Calculate the optimal price and quantity set

Reference no: EM133442176

Question: Suppose there is only one company in the industry that can charge a subscription price and a unit price. The consumers are identical, and all have the following demand, p = 20 -q. The marginal cost is c (where c is a known constant).

a. Calculate the optimal price and quantity set.

b. How would an increase in costs, represented by an increase in c, affect your answers in part a)?

Reference no: EM133442176

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