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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 strategy pricing strategy.
b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price?
Sagot :
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