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What is its total profit from juan

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If the Ice Cream Monopoly Company from Figure 18.2 sells to Juan (whose demand curve is shown in Figure 14.16(b) using a two-part tariff with a per-cone price of $1.50, what is the largest fixed fee it can charge Juan and still persuade Juan to make a purchase? How does its total revenue from Juan under this two-part tariff compare to its total revenue from Juan when it sells Juan four cones, each priced at Juan's willingness to pay for it? What is its total profit from Juan?

Reference no: EM131154692

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