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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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