Ask a Question
  
  
  
Top Posters
Since Sunday
28
27
27
26
25
24
24
23
23
22
22
22
New Topic  
wrote...
Posts: 55
3 weeks ago Edited: 3 weeks ago, bio_man

Question 1.

Figure 16-5




Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price. (This is also called a two-part tariff.) What is the profit earned under this pricing scheme?

• $5,760

• $6,400

• $7,680

• $7,870

Question 2.

Figure 16-5




Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the competitive price. (This is also called an optimal two-part tariff.) What is the quantity it should produce?

• 240 units

• 320 units

• 480 units

• 560 units
Source  Download
Microeconomics
Edition: 7th
Authors:
Read 4 times
2 Replies
Replies
Answer verified by a subject expert
wrote...
Posts: 61
Rep: 8 0
3 weeks ago
Sign in or Sign up in seconds to unlock everything.

Answer 1

$6,400

Answer 2

480 units
1
Related Topics
wrote...
3 weeks ago
Smart ... Thanks!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  55 People Browsing
Related Images
 6709
 560
 94