You are the manager of a monopoly. The demand for your product is P=100-2Q and the marginal revenue is MR=100-4Q. Total cost is 20Q where Q is output.
1. Find the profix maximizing output and the price as well as your firm's profit.
2. Determine the firms optimal two-part pricing strategy; that is determine the firm's per unit price and fixed charge along with the firm's output. Calculate the firm's profit in this case. How does the profit in this case compare with the outcome you calculated in question 1 of this problem?