You have estimated that all consumers who buy from your firm have identical dema

Question

You have estimated that all consumers who buy from your firm have identical demands for your product. Each customer's demand is given by Q = 100 - 4 P, and your total cost of production is TC = FC + 15 Q. You want to devise a two-part pricing strategy (T ; P), where T represents the fixed fee and P the price per unit. Given this information, the optimal two-part pricing is: Answer T = $120 and P = $25 T = $400 and P = $15 T = $200 and P = $15 None of the above You have estimated that all consumers who buy from your firm have identical demands for your product. Each customer's demand is given by Q = 100 - 4 P, and your total cost of production is TC = FC + 15 Q. You want to devise a two-part pricing strategy (T ; P), where T represents the fixed fee and P the price per unit. Given this information, the optimal two-part pricing is: T = $120 and P = $25 T = $400 and P = $15 T = $200 and P = $15 None of the above T = $120 and P = $25 T = $400 and P = $15 T = $200 and P = $15 None of the above

Explanation / Answer

T= $200 andP= $15

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