Question

Give an example of a two-part tariff with two consumers having different demand equations where you:

- CANNOT price discriminate (Setting the same two-part price for both consumers)

- Can price discriminate

The answer must include the entry fee, unit price and the total profit. :-)

Answer #1

Give an example of a two-part tariff with two consumers having
different demand equations where you:
- CANNOT price discriminate (Setting the same two-part price for
both consumers)
- Can price discriminate
The answer must include the entry fee, unit price and the total
profit. :-)

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curves
q₁ =1-p
q₂ =1-(p/2).
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(b) What price should be charged for group 1 by the
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If the firm charges a fee that is too high, then it may lose all
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TC = 5 +...

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