You are the manager of a monopoly. Your analytics department estimates that a typical consum nverse demand function for your firm's product is P= 400 -20Q, and your cost function is a Determine the optimal two-part pricing strategy Per-unit fee: $ 120 Fixed fee: $ b. How much additional profit do you earn using a two-part pricing strategy compared with charg consumer a per-unit price?
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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 = 300-20 Q, and your cost function is C(Q) = 60Q. 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?You are the manager of a monopoly. Your analytics department estimates that a typical consumer's Inverse demand function for you firm's product is P= 100 -400, and your cost function is a = 200. a. Determine the optimal two-part pricing strategy. Per-unit fee: $ 20 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?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 = 350-20Q, and your cost function is C(Q) = 70Q. 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? $
- 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 QQ-2900. a. Determine the optimal two-part pricing strategy. Per-unit fee: $[ Fixed fee: $1 b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price? $ ŅYou 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 = 350-20Q and your cost function is C(Q) = 70Q. a. Determine the optimal two-part pricing strategy (optimal meaning most profitable) Per Unit Fee:$___ (do not round intermediate numbers, include two decimals) Fixed Fee $____ (do not round intermediate numbers, include two decimals) b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price? PLEASE SHOW ALL WORK AND CALCULATIONSYou are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P= 250-400, and your cost function is aQ) = 10Q. 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? $
- You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1’s elasticity of demand is −3, while group 2’s is −5. Your marginal cost of producing the product is $40.a. Determine your optimal markups and prices under third-degree price discrimination.Instructions: Enter your responses rounded to two decimal places.Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2: $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits.Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. check all that apply We are able to prevent resale between the groups.unanswered At least one group has elasticity of demand greater than 1 in absolute value.unanswered…You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1's elasticity of demand is -4, while group 2's is −6. Your marginal cost of producing the product is $50. a. Determine your optimal markups and prices under third-degree price discrimination. Instructions: Enter your responses rounded to two decimal places. Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2: $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. There are two different groups with different (and identifiable) elasticities of demand. We are able to prevent resale between the groups. At least one group has elasticity…You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1’s elasticity of demand is −4, while group 2’s is −2. Your marginal cost of producing the product is $30.a. Determine your optimal markups and prices under third-degree price discrimination.Instructions: Enter your responses rounded to two decimal places.Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2: $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits.Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. check all that apply 2 At least one group has elasticity of demand less than one in absolute value.unanswered At least one group has elasticity of demand greater than…
- You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1’s elasticity of demand is −6, while group 2’s is −5. Your marginal cost of producing the product is $50.a. Determine your optimal markups and prices under third-degree price discrimination.Instructions: Enter your responses rounded to two decimal places.Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2: $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits.In reference to the chart, calculate and explain in detail what the maximum revenue is for an individual pricing policy, and what the maximum total revenue would be if pure bundling was employed.The price elasticity of demand for a monopolistic firm's product is given by 0.3 p 8-0.6 p najp == (a) If the firm raises their price from po = $64.00 to p₁= $65.00, then the demand for their good will... [Select] (b) The firm's marginal revenue is maximized when they set their price to... [Select]
