Assume a firm faces two customers in the market. Customer 1 has an inverse demand of p= 120 - 91. and Customer 2 has an inverse demand of p= 180 – 42. Marginal cost per unit is constant and equal to $20. Determine the profit-maximizing price and identical lump-sum fee charged to these two customers. For the following questions, assume the firm will always sell to both customers. The profit-maximizing price is S (Enter a numeric response using a real number rounded to two decimal places.) The lump-sum fee is $ (Enter a numeric response rounded to the nearest penny.)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Assume a firm faces two customers in the market. Customer 1 has an inverse demand of
p= 120 - 91,
and Customer 2 has an inverse demand of
p= 180 – 92.
Marginal cost per unit is constant and equal to $20. Determine the profit-maximizing price and identical lump-sum fee
charged to these two customers.
For the following questions, assume the firm will always sell to both customers.
The profit-maximizing price is S
(Enter a numeric response using a real number rounded to two decimal places.)
The lump-sum fee is $
(Enter a numeric response rounded to the nearest penny.)
Transcribed Image Text:Assume a firm faces two customers in the market. Customer 1 has an inverse demand of p= 120 - 91, and Customer 2 has an inverse demand of p= 180 – 92. Marginal cost per unit is constant and equal to $20. Determine the profit-maximizing price and identical lump-sum fee charged to these two customers. For the following questions, assume the firm will always sell to both customers. The profit-maximizing price is S (Enter a numeric response using a real number rounded to two decimal places.) The lump-sum fee is $ (Enter a numeric response rounded to the nearest penny.)
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