1)Suppose that there are 1000 identical customers in a market. The market demand function is Q= 10-2P, where P is the price per unit of output. A firm's marginal cost is $1 and zero total fixed cost. If the firm uses a two-part pricing strategy, what is the total profit? A) $10000. B) $14000. C) $16000. D) $18000. E) $20000.

1)Suppose that there are 1000 identical customers in a market. The market demand function is Q= 10-2P, where P is the price per unit of output. A firm's marginal cost is $1 and zero total fixed cost. If the firm uses a two-part pricing strategy, what is the total profit? A) $10000. B) $14000. C) $16000. D) $18000. E) $20000.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.4P

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