The Kiwi company (supplier) has introduced a new device called jPad. jPad is sold through Good Buy (retailer). Kiwi produces one jPad at $200 and sells it to Good Buy at $400. Good Buy has estimated that demand for the jPad depends on the retail price (p) according to the demand function: D(p) = 2000 - 2p.

With calculus/Excel used, optimal retailer's prices were calculated.
(Independent pricing) The optimal retailer's price is $700.
(Coordinated pricing) The optimal retailer's price is $600.

In the two-part tariff, the supplier sets a transfer price of $ ___.

	A.	200
	B.	800
	C.	600
	D.	700
	E.	100
	F.	500
	G.	300
	H.	400

Answer rating: 100% (QA)

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