Determine the optimal two-part pricing strategy

Reference no: EM13181832

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: $
Fixed fee: $

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: EM13181832

Questions Cloud

Calculate average working capital requirement : GX Ltd is about to commence a new business for which you are asked to calculate its average Working Capital Requirement for the first year with the help of the following information:

How fast is the angle of elevation of the rocket increasing : When a rocket is 2 kilometers high, it is moving vertically upward at a speed of 300 kilometers per hour. At that instant, how fast is the angle of elevation of the rocket increasing, as seen by an observer on the ground 5 kilometers from the laun..

State the effect of temperature on gases confined : the effect of temperature on gases confined to small volumes. What is the pressure of 3.40mol of gas D measured at 251 C in a 1.75-L container assuming real behavior?

Prepare a working capital requirement forecast statement : Prepare a Working Capital Requirement forecast statement for the coming year and assume that the production is carried on evenly throughout the year, and wages and overheads accrue similarly. A time period of 4 weeks is equivalent to a month.

Determine the optimal two-part pricing strategy : 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: $ Fixed fee: $

Explain what is the magnitude of the change in ph : What is the magnitude of the change in pH when 1.8 g of NaOH is added to 1.00 L of a solution that is 0.100 M in NH3 and 0.100 M in NH4Cl?

Use the first derivative test to locate and identify : Use the first derivative test to locate and identify all relative extrema

Explain what is the ph of a buffered sysem made : what is the pH of a buffered sysem made by dissolving 17.42 g of KH2PO4 and 20.41 g of K2HPO4 in water to give a volume of 200.0 mL

Similarly for pasch and dedekind axioms : Provide brief justification for those that are and counter examples for those that are not.

User Account

All Pages