Question: A monopoly with constant marginal costs m = $18 has two potential groups of customers, whose demands are Q 1 = 100 0.9p and Q
A monopoly with constant marginal costs m = $18 has two potential groups of customers, whose demands are Q1= 100 0.9p and Q2= 100 p respectively. If the monopoly can charge them the same two-part tariff, what is the optimal unit price p and fixed fee T?
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