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.......... We want to show that when a monopolist uses two-part pricing and faces identical consumers, charging a price higher or lower than the competitve

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We want to show that when a monopolist uses two-part pricing and faces identical consumers, charging a price higher or lower than the competitve price, p = 10 (with a lump-sum fee equal to consumer surplus), reduces the monopoly's profits. 120- 110- The figure to the right shows the demand curve for a representative consumer. Determine the profits (per-unit profits + 100- collected fee from the consumer) for each of the following per-unit prices. Assume fixed costs are negligible. 90- Profit from two-part pricing when price is p = 10 equals $ . (Round to two decimal places.) 80 - Profit from a two-part tariff when price is p = 30 equals $ . (Round to two decimal places.) p, $ per unit 60- Profit from a two-part tariff when price is p = 5 equals $ . (Round to two decimal places.) 50 407 30- 20- 10 - D 10 20 30 40 50 60 70 80 90 100 110 120 q, Units per day

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