Question 6 Consider the case where there is a consumer in the market with a demand of P = 80 - 4q. A monopolist has vari
Posted: Sun Jul 03, 2022 12:58 pm
Question 6 Consider the case where there is a consumer in themarket with a demand of P = 80 - 4q. A monopolist has variablecosts of VC = 0.5q2 where P is price and q the quantity sold. Themonopolist engages in first degree price discrimination using atwo-part tariff, what is the fixed fee (F) and per-unit fee charged(p)? A .F = 256, p = 8 B. F = 80, p = 12 C. F = 512, p = 16 D. F =128, p = 4