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Business, 14.07.2019 03:00 tami5

You are the manager of a monopoly. a typical consumer’s inverse demand function for your firm’s product is p = 250 – 40q, and your cost function is c(q) = 10q. a. determine the optimal two-part pricing strategy. per-unit fee: $10 correct fixed fee: $720 correct b. how much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price? $360 correct

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