Question
Firm A and Firm B are monopolies. Firm A MC = 3 ; Firm B MC = 1 Firm B has a demand curve of
Firm A and Firm B are monopolies. Firm A MC = 3 ; Firm B MC = 1
Firm B has a demand curve of QD (p) = 12 - p
Firm A offer two part tariff to Firm B.
(a) What is the optimal two part - tariff?
(b) What will be the price that Firm B sell?
(c) What is the quantity?
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Contemporary Labor Economics
Authors: Campbell R. McConnell, Stanley L. Brue, David Macpherson
11th Edition
1259290602, 1259290603, 978-1259290602
