
Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616
Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616 Exercise 13
Suppose the demand functions facing the wireless telephone monopolist in worked-out problem 18.4 (page 688) are instead
for each low-demand consumer and
for each high-demand consumer, where P is the per-minute price in dollars. The marginal cost is 10 cents per minute. Suppose the monopolist offers only a single two-part tariff. What will be the monopolist's profit from each type of consumer if it charges a per-minute price of 10 cents and a fixed fee that causes both types of consumer to make a purchase What if it charges a per-minute price of 20 cents If there are 100 high-demand consumers, how many low-demand consumers can the monopolist serve and find the 20-cent-per-minute price more profitable


Explanation
Price discrimination is the practice of ...
Microeconomics 2nd Edition by Douglas Bernheim
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