Explain how much additional profit do you earn using a two

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Reference no: EM1317903

Q. "You are the manager of a monopoly. A typical customer's inverse demand function for your firm's product is P = 100 - 20Q and your cost function is C (Q) = 20Q.

a. Determine the optimal two-part pricing strategy.

b. Explain how much additional profit do you earn using a two-part pricing strategy compared with charging this customer a every-unit price? Explain how all calculations"

Reference no: EM1317903

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