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You are the manager of a monopoly. A typical consumer's inverse demand function for your product is P =220-40Q and your cost function is C(Q) = 20Q.
a. Determine the optimal two-part pricing strategy.
b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per unit price?
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Assume that in short-run equilibrium, a particular monopolistically competitive firm charges $10 for each unit of its output and sells 48 units of output per day. The average total cost (ATC) for those 48 units is $4. What will be its economic profit..
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What was it about freedom of religion in the United States that led to utopian communities and new religions where sexual experimentation was central?
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