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You are the manager of a monopoly. Your analytics department estimates that a typical consumers inverse demand function for your firms product is P =
You are the manager of a monopoly. Your analytics department estimates that a typical consumers inverse demand function for your firms product is P = 150 20Q, and your cost function is C(Q) = 30Q. a. Determine the optimal two-part pricing strategy.
Per-unit fee: $
Fixed fee: $ b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price?
$
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