Consider an Amusement Park. The Park owner has a fixed cost and a marginal cost of per ride. Consumers have a demand curve . The Park owner designs a two-part tariff. How much should he be charging as fixed fee, and per unit price, ?
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Consider an Amusement Park. The Park owner has a fixed cost T and a marginal cost of 0· 50 per ride. Consumers have a demand curve Q = 10 - 2P. The Park owner designs a two-part tariff. How much should he be charging as fixed fee, F and per unit price, P? (A) F = 25, P = 0· 50 (B) F = 42· 75, P = 2 (C) F = 20· 25, P = 0· 50 (D) None of the above
Also written as: Consider an Amusement Park. The Park owner has a fixed cost T and a marginal cost of 0* 50 per ride. Consumers have a demand curve Q = 10 - 2P. The Park owner designs a two-part tariff. How much should he be charging as fixed fee, F and per unit price, P?
Monopoly and price discrimination has come up 128 times in 7 exams since 2004.
This question is on First- and second-degree price discrimination and two-part tariffs, part of Monopoly and price discrimination in Microeconomics.
Charging different prices by consumer or by quantity, up to perfect discrimination and two-part tariffs.
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Question from the JNU SIS 2017 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.