Suppose There Are Two Types of Consumers with Two Different

question 57

Multiple Choice

Suppose there are two types of consumers with two different demand curves,and the marginal cost of the monopoly is $10.What could be the possible price under two-part pricing that will maximize the monopoly profit?

• A)$8
• B)$9
• C)$10
• D)$12

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Definitions:

Minimum Required Rate

The lowest acceptable rate of return on an investment, as determined by management or investors.

Residual Income

The amount of income that an individual or company retains after accounting for all operating expenses and cost of capital.

Operating Assets

Assets that are used by a company in its daily operations to generate revenue, excluding any investment or non-operational assets.

Net Operating Income

The profit derived from a company's regular business activities, excluding deductions of interest and taxes.