Determine the optimal two-part pricing strategy

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You are the manager of a monopoly. A typical consumer’s inverse demand function for your firm’s product is P=100-20Q, and your cost function is C=20Q.

(a) Determine the optimal two-part 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?

Reference no: EM131101256

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