Pricing

Explain why charging a higher or lower price than p: 10 (with a lump-sum fee equal to consumer surplus} reduces the monopoly's prot in the gure to the right. Show the monopoply's profit if p = 50 and compare itto its prot if p = 10 [with lump sum fees equal to the resulting consumer surplus using twopart tariffs and where marginal cost is rn = 10 per unit}. Charging a price higher than p = 10 reduces prot because 0 A. protable units are not produced 0 B. consurrier surplus increases. 0 C. marginal cost increases. 0 D. price is less than marginal cost. 0 E. the xed fee increases. Charging a price lower than p = 10 reduces profit because 0 A. unprofitable units are produced. 0 B. economic surplus increases. 0 C. the quantity sold decreases. O D. consurrier surplus decreases. O E. the xed fee decreases. Prot from a two-part tariff when price is p : 10 equals $ (Enter a numeric: response using an r'ntegec) Prot from a two-part tariff when price is p = 50 equals $ p. $ parunlt 0 1D 20 30 40 5|] 6|) T0 80 90100110120 q.Unilsperdag.rr