The monopolist has constant marginal and average cost AC=MC=70 and faces the market demand P-120-Q. Suppose the monopolist can perfectly price discriminate by setting a two-part tariff: that is, the monopolist charges the consumer a fixed fee Fand a per unit price . What are the optimal values of Fand p that the monopolist sets? O F-$2500, p-$70 O F-$3500. p-$70 O F-$2375, p-$95 O F-$1250, p-$70 OF-$2975, p-$85

The monopolist has constant marginal and average cost AC=MC=70 and faces the market demand P-120-Q. Suppose the monopolist can perfectly price discriminate by setting a two-part tariff: that is, the monopolist charges the consumer a fixed fee Fand a per unit price . What are the optimal values of Fand p that the monopolist sets? O F-$2500, p-$70 O F-$3500. p-$70 O F-$2375, p-$95 O F-$1250, p-$70 OF-$2975, p-$85

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter16: Government Regulation

Section: Chapter Questions

Problem 10E

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