Market demand function for a local monopoly

Reference no: EM13696767

Suppose P = 20 ? 2Q is the market demand function for a local monopoly. The marginal cost is 2Q. The firm currently uses a standard pricing strategy. Which of the following will allow the firm to enhance the profits?

A. Engage in two-part pricing.

B. Engage in commodity bundling.

C. Engage in randomized pricing.

D. Engage in two-part pricing and engage in commodity bundling.

Reference no: EM13696767

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