Given the demand curve p 2000 ndash 2q and marginal costs, Business Economics

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Given the demand curve p 2000 ndash 2q and marginal costs

1. Given the demand curve P= 2,000 – 2Q and marginal costs of MC = 1,100 + 2Q, the firm’s profit will maximize at equilibrium price and output of:

2. Based on the demand and cost function in previous question, in a two-part tariff pricing strategy, what is the most fees (leaving buyers with zero consumer surplus) the seller is able to charge?

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Business Economics: Given the demand curve p 2000 ndash 2q and marginal costs

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Business Economics: Given the demand curve p 2000 ndash 2q and marginal costs

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