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Demand curve for product is P=10-0.2Q Costs are: MC-AVC=4 A -suppose you can only use simple pricing. What is the optimal price you should charge

Demand curve for product is

P=10-0.2Q

Costs are:

MC-AVC=4

A -suppose you can only use simple pricing. What is the optimal price you should charge

B - What would be the consumer surplus under optimal simple pricing

C - Suppose now that you decide to use a more complex price strategy and to charge a 2-part tariff. What is the optimal per-unit price and optimal flat fee?

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