Suppose P = 20 − 2Q Is the Market Demand

Multiple Choice

Suppose P = 20 − 2Q is the market demand function for a local monopoly.The marginal cost is 2Q.The firm currently uses a standard pricing strategy.Which of the following will allow the firm to enhance the profits?

A) Engage in two-part pricing.
B) Engage in commodity bundling.
C) Engage in randomized pricing.
D) Engage in two-part pricing and engage in commodity bundling.