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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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