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You are the manager of a monopoly. Your analytics department estimates that a typical consumer's inverse demand function for your firm's product is P= 450
You are the manager of a monopoly. Your analytics department estimates that a typical consumer's inverse demand function for your firm's product is P= 450 -40Q, and your cost function is C(Q) = 290Q. a. Determine the optimal two-part pricing strategy. Per-unit fee: $ 40 Fixed fee: $ 80 b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price? $ 656 X
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