If an entrepreneur charges a large enough lump-sum fee to make a profit, it may even be possible to set the per-unit price at the

Question

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Setting a socially optimal single price is a strategy that ensures that the product is priced at a level that is affordable for the average consumer while still generating profit for the entrepreneur. By setting a lump-sum fee that covers the costs of production and generates a profit, the entrepreneur can then set the per-unit price at a socially optimal single price. This can be more attractive to consumers compared to segmented market pricing, which can be perceived as unfair, or a N-part tariff price, which may be complex and confusing for consumers to understand.

If an Entrepreneur Charges a Large Enough Lump-Sum Fee to Make