Consider the case where there is a consumer in the market with a demand f P = 40 - 2q. A monopolist has variable costs of VC = q2 where P is price nd q the quantity sold. The monopolist engages in first degree price scrimination using a two-part tariff, what is the fixed fee (F) and per-ur

Micro Economics For Today
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ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter13: Antitrust And Regulation
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Consider the case where there is a consumer in the market with a demand
of P = 40 - 2q. A monopolist has variable costs of VC = q2 where P is price
and q the quantity sold. The monopolist engages in first degree price
discrimination using a two-part tariff, what is the fixed fee (F) and per-unit
fee charged (p)?
OF = 160, p = 8
OF = 120, p = 32
OF = 100, p = 20
OF=28, p = 28
Transcribed Image Text:Consider the case where there is a consumer in the market with a demand of P = 40 - 2q. A monopolist has variable costs of VC = q2 where P is price and q the quantity sold. The monopolist engages in first degree price discrimination using a two-part tariff, what is the fixed fee (F) and per-unit fee charged (p)? OF = 160, p = 8 OF = 120, p = 32 OF = 100, p = 20 OF=28, p = 28
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