Pricing strategy compared with single price strategy

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Reference no: EM131109715

Suppose you are the manager of a golf club with monopoly power. a typical consumer's inverse demand function for your firm's product is Q=100-20Q, and your cost function is C(Q)=20Q.

a. If you apply a two-part pricing strategy, how much would be the membership fee and the per unity price?

b. How much additional profit do you earn using a two-part pricing strategy compared with single price strategy?

Reference no: EM131109715

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