Determine the optimal two-part pricing strategy, Microeconomics

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Determine the optimal two-part pricing strategy

"You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P = 100 - 20Q, and your cost function is C(Q) = 20Q.

a. Determine the optimal two-part pricing strategy.

b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price?

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Microeconomics: Determine the optimal two-part pricing strategy

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Microeconomics: Determine the optimal two-part pricing strategy

Reference No:- TGS066731

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Recent Questions Asked Microeconomics

Q : What entry is made in january to record the sale

Q : Payroll reduce firm-s total fixed costs-total variable costs

Q : Company fiscal year corresponds to the calendar year

Q : Behavior of buyers and sellers

Q : Determine the optimal two-part pricing strategy

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Determine the optimal two-part pricing strategy

Reference No:- TGS066731

Recent Questions Asked Microeconomics

Q : What entry is made in january to record the sale

Q : Payroll reduce firm-s total fixed costs-total variable costs

Q : Company fiscal year corresponds to the calendar year

Q : Behavior of buyers and sellers

Q : Determine the optimal two-part pricing strategy

Q : Expected additional case expenses

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