You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P= 250-400, and your cost function is CQ) = 100. a. Determine the optimal two-part pricing strategy. Per-unit fee: $ Fixed fee: $ b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price? $

You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P= 250-400, and your cost function is CQ) = 100. a. Determine the optimal two-part pricing strategy. Per-unit fee: $ Fixed fee: $ b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price? $

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.5P

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