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There is a strange pricing strategy called a quantity surchargeyou pay more to buy more. Suppose there is an absolute monopolist who will sell 1
There is a strange pricing strategy called a "quantity surcharge"you pay more to buy more. Suppose there is an absolute monopolist who will sell 1 unit for $1, 2 units for $2 each, and 3 units for $3 each and so on. Construct the budget constraint for a consumer who has $100 and is choosing between this (very odd) good and oatmeal cookies (where cookies cost $1 ea.). When would it make sense to use this kind of pricing policy
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