Multiple Choice
Let the inverse demand curve for a monopolist's product be and the marginal cost of production be constant at . Suppose that the firm considers moving from a uniform pricing strategy to a two-block tariff where the first block provides 15 units at a price of and the second block provides an additional 15 units at a price of . How much does the monopolist's profit rise with this scheme?
A)
B)
C)
D)
Correct Answer:

Verified
Correct Answer:
Verified
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