76 358
Assignments Done
Successfully Done
In May 2019

Answer to Question #41544 in Microeconomics for ash

Question #41544
You have been asked by your boss to report on the expected profits from a single price strategy compared with a two part pricing strategy. The estimated demand for the firm’s product is: Qd = 4000.2P.
Per unit cost is estimated as constant at $1,000.00. Provide a report which explains the profits from a single price profit maximizing strategy with a two part profit maximizing strategy involving a fixed fee plus a per unit fee. Assume that total fixed cost is $30,000. What is the optimal fixed fee? Why does the two part pricing policy increase total profits?
Expert's answer

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

Privacy policy Terms and Conditions