Suppose a firm faces an identical inverse demand curve of p = 110- q for each consumer in the market. Currently, the firm's average cost = marginal cost = $20. Determine the profit-maximizing price and identical lump-sum fee to charge with a two-part tariff. The profit-maximizing price to charge is $. (Enter a numeric response using a real number rounded to two decimal places.) The profit-maximizing lump-sup fee to charge is $. (Enter a numeric response rounded to the nearest dol ar.)

Suppose a firm faces an identical inverse demand curve of p = 110- q for each consumer in the market. Currently, the firm's average cost = marginal cost = $20. Determine the profit-maximizing price and identical lump-sum fee to charge with a two-part tariff. The profit-maximizing price to charge is $. (Enter a numeric response using a real number rounded to two decimal places.) The profit-maximizing lump-sup fee to charge is $. (Enter a numeric response rounded to the nearest dol ar.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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