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Question: problem i in a market of a certain good there...

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PROBLEM I In a market of a certain good, there is a monopolist who has a constant marginal cost c 8. There are two consumes1,2) in this market, and their demand functions are given by p 20 4q for consumer 1 and p- 25-5q for consumer 2. Suppose that the monopolist is trying to design an optimal two-part tariff. Q4. If the monopolist maximizes its profit while it wants to attract both consumers, what fixed fee does the monopolist charge to the consumers? (a) 121/8 (b) 116/3 (c) 95/4 (d) 17/2 (e) 191/11 Q5. If the monopolist maximizes its profit while it wants to attract both consumers, what price per unit of the good does the monopolist charge to the consumers? (b) 11 (d) 15 (e) 17 Q6. What is the maximum profit under a two-part tariff when the monopolist attracts both consumers? (a) 123/4 (b) 71/2 (c) 242/7 (d) 38 (e) 181/5 Q7. What is the maximum profit under a two-part tariff when the monopolist attracts only consumer 2? (a) 173/8 (b) 311/13
(c) 56/3 (d) 289/10 (e) 71/2
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