Microeconomics 2nd Edition by Douglas Bernheim

Exercise 2

Clearvoice faces 100 high-demand consumers, whose demand function is Q H = 150 - 100 P H , and 400 low-demand consumers, whose demand function is Q L = 50 - 100 P L. It has a marginal cost of 10 cents per minute. What is its profit-maximizing two-part tariff