What is the optimal two-part tariff for this monopolist

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Reference no: EM131391798

The individual demand for a product has been estimated to be qd=32−2p, the firm’s cost function is C(q)=4q+25 and the marginal cost is 4. What is the optimal two-part tariff for this monopolist?

(a) A price per unit of $25 and a fixed fee of $144.

(b) A price per unit of $4 and a fixed fee of $288.

(d) A price per unit of $4 and fixed fee of $32.

(e) None of the above.

(e) None of the above

Reference no: EM131391798

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