ou are the manager of a monopoly. Your analytics department estimates that a typical consumer’s inverse demand function for your firm’s product is P = 350 −20Q, and your cost function is C(Q) = 70Q. a. Determine the optimal two-part pricing strategy. Per-unit fee: $ 70 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? $

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