Determine the optimal two part pricing strategy

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Reference no: EM131004858

You are the manager of a monopoly. The consumer’s inverse demand function for your firm’s product is P = 100 –20Q, and your cost function is C (Q) = $20Q.

Part a Determine the optimal two part pricing strategy

Part b How much additional profit do you earn using a two part pricing strategy compared with charging the consumer a per unit price

Reference no: EM131004858

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