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Solve clearly Juan's Demand for los Cream 2.50 2.28 200 $ per cone 1.28- 1.00 Iice Cream Cones The marginal cost of producing ice cream
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Juan's Demand for los Cream 2.50 2.28 200 $ per cone 1.28- 1.00 Iice Cream Cones The marginal cost of producing ice cream comes is $1.00. Suppose the Ice Cream Monopoly Company sel's to Juan using s two-part tariff with a per-cone price of $100. Instructions: Round your answers to 2 decimal places as needed. a. What is the largest fixed fee It can charge Juan and still persuade Juan to make a purchase? b. How does its total revenue from Juan under this two-port tariff compare to it's total revenue from Juan when It sells Juan 6 Ice cream cones, each priced at Juan's willingness to pay for it (on a cone-per-cone boats)? Under this two-part tariff, what is its total profit from Juan? TR -$ Profit - $Step by Step Solution
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