The average consumer at a firm with market power has an inverse demand function of P = 10 - Q.The firm's cost function is C = 2Q.If the firm engages in two-part pricing, what is the optimal price to charge a consumer for each unit purchased?
A)$0.
B)$1.
C)$4.
D)none of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

The Answer of The average consumer at a firm with market power has an inverse demand function of P = 10 - Q.The firm's cost function is C = 2Q.If the firm engages in two-part pricing, what is the optimal price to charge a consumer for each unit purchased?
A)$0.
B)$1.
C)$4.
D)none of the statements associated with this question are correct.

The Average Consumer at a Firm with Market Power Has