1. You are running your own business, and you estimate that each individual customer has the following demand curve: P = 50 - 5Q Your costs are constant at $10 per unit. Given the above information, answer each question for each pricing strategy: 
2. 
   
3. A. Assume you charge the same price to each customer. What is your profit-maximizing price? What is the quantity each customer will purchase? What is your profit per customer? 
4. 
   
5. B. Assume you use 2-part pricing for each customer. What is your profit maximizing price? What is the quantity each customer will purchase?

Answer rating: 100% (QA)

Answer A The profitmaximizing price is 30 per unit At this price each customer will purchase 8 units ... View the full answer