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1. There are two segments of the market represented by demand relationships: Q = 90 3p and Q = 180 61). There's a constant marginal

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1. There are two segments of the market represented by demand relationships: Q = 90 3p and Q = 180 61). There's a constant marginal cost of $10 to serve the market. There are 5 consumers in each of the two demand segments. In other words, there are 5 people Whose individual demand is represented by Q = 30 3p and 5 people whose demand is represented by Q = 180 6p. (a) Find the optimal two-part tari scheme if you are required to charge a per-unit price of $10, but must offer the same xed price to both types of demanders. Report both prices and prots. (b) 12 points Find the optimal twopart tariff scheme if you are free to set any per unit price but must offer the same xed price to both types of demanders. Report both prices and prots. ( Bb) The firm has an option to charge the price = 10 for low type and charge a fixed fee = 600 For high type , we should go for MR= MC Q = 180- 6p P= (180-Q) 16 TR = PQ = (180-Q276 MR = (180-2Q) 16 equating with MC = 10 Q= 60 . Putting in demand P= 20 so high demanders price = 20 / Lower demanders p= 10 Fixed fee= 600 Total profit = 600# ( 10) + 10(60) (5) = 9000

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