Question
3) Suppose there is only one company in the industry that can charge a subscription price and a unit price. The consumers are identical, and
3) Suppose there is only one company in the industry that can charge a subscription price and a unit price. The consumers are identical, and all have the following demand, p = 20 -q. The marginal cost is c (where c is a known constant).
a. Calculate the optimal price and quantity set. b. How would an increase in costs, represented by an increase in c, affect your answers in part a)?
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Economics for Managers
Authors: Paul G. Farnham
3rd edition
132773708, 978-0133561128, 133561127, 978-0132773706
