Determine the optimal two part pricing strategy

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Reference no: EM13184190

You are the manager of a monopoly. A typical customer's inverse demand function for your firm's product is p=250-4Q and your cost function is C(Q)=10Q.

Determine the optimal two part pricing strategy.

Per Unit fee?
Fixed Fee?

How much addtional profit do you earn using a two part pricing strategy compared with charging a per unit price?

Reference no: EM13184190

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