a. For each consumers, what is the best (first-degree price discrimination, profit maximizing) offer to make to that consumer? What is the total profit dealing with these two consumers?
b. Suppose the firm sets an entry fee plus per-unit price for each consume. It can tailor the entry fee and the per-unit price to the individual consumer. What are the best (profit-maximizing) entry fees and per-unit prices for it to set? What is the total profit in this case?
c. Suppose the firm must charge a single linear price for its output, in nondiscriminatory fashion. What is the best (profit-maximizing) price for it to charge? What is the total profit?
Recently Asked Questions
- Hi, can you show me step by step how to solve this differentiation equation and which rule to apply? Thank you!
- Should organizations/providers be required to turn over the minutes, discussions or decisions of ethical committees?
- You have noticed that the A/R clerk has created an abnormally high number of credit memos. You also notice the inventory does not reflect the additional