MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
9th Edition
ISBN: 2810022149537
Author: Baye
Publisher: MCG
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Question
Chapter 11, Problem 5CACQ
(A)
To determine
The optimal two-part pricing strategy is to be explained.
(B)
To determine
The additional profit the firm earns using two-part pricing strategy compared with charging the consumer a per unit price is to be calculated.
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Students have asked these similar questions
You 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 = 300-20
Q, and your cost function is C(Q) = 60Q. a.
Determine the optimal two - part pricing strategy. Per -
unit fee: $ 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?
You 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 = 200 − 20Q, and your cost function is C(Q) = 80Q.a. Determine the optimal two-part pricing strategy.
Per-unit fee: $
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?
You 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= 400 -20Q, and your cost function is CQ) = 120Q
a. Determine the optimal two-part pricing strategy.
Per-unit fee: $
120
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?
Chapter 11 Solutions
MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
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