Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › JNU › JNU SIS 2018 › Q28
2 marks, −1Microeconomics › Monopoly and price discrimination › First- and second-degree price discrimination and two-part tariffsModerateabout 1 min

JNU SIS 2018 Question 28: Monopoly and price discrimination

Consider an amusement park. The park owner has a fixed cost TTT and a marginal cost of 0.500.500.50 per ride. Consumers have a demand curve Q=10−2PQ = 10 - 2PQ=10−2P. The Park owner designs a two-part tariff. How much should he be charging as fixed fee, FFF, and per unit price, PPP?

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

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

Monopoly and price discrimination has come up 128 times in 7 exams since 2004.

What this question tests

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.

TestStop has 19 past-paper questions on this subtopic.

Practise Monopoly and price discriminationMore on First- and second-degree price discrimination and two-part tariffs

Similar questions from other papers

  • CUET-PG 2026 · Q31Given below are two statements: Assertion A: Monopoly power is the ability to set price above marginal cost and that the amount by which price exceeds marginal cost…
  • GATE 2026 · Q43The inverse demand function for the first book on \"Economics of Digital Public Infrastructure in India\" is given by p=200-0.002Q; where, p is the price of the book…
  • IIT JAM 2026 · Q14A monopolist sells different units of output for different prices, but every individual who buys the same quantity of the good pays the same price. It is known as price…
  • UGC-NET 2026 · Q17If AR = 15 - Q, then the value of Marginal Revenue will be:
  • GATE 2025 · Q42The inverse demand function for a monopolist is given by P = 100 - kQ where P is the unit price of the good, Q is the quantity and k is a constant. The cost function…

Question from the JNU SIS 2018 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.