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Consider a monopolist selling to a market made up of ten identical consumers and a market demand curve of Q = 100 - 10P, where
Consider a monopolist selling to a market made up of ten identical consumers and a market demand curve of Q = 100 - 10P, where Q is market quantity demanded and P is per unit price. The monopolist has no fixed costs and a constant marginal cost of $2 per unit. If the monopolist can engage is first-degree price discrimination using a two-part tariff (F), what is the fixed fee and per unit price (p) charged?
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F = 400, p = 2
F = 200, p = 2
F = $32, p = 2
F = 128, p = 0
F = 800, p = 2
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