Answer: hello your question is poorly written below is the complete
A monopolist has cost function C = F + 2Q and the regulator is willing to allow the firm to use a two-part tariff per consumer equal to T = A + pq to cover total costs. Total demand is Q = 102 − p and there are 100 identical consumers. What is the optimal tariff or tariff that would maximize social welfare (fixed part and marginal price)?
answer : Fixed part = $5000 per customer = $500,000
marginal price = $2
Step-by-step explanation:
Marginal cost of monopolist = dc / dq = 2
Q = quantity of the concerned good/service.
p = price of concerned good/service
Based on profit maximizing condition of the monopoly firm under the two-part tariff system ; output of concerned goods/services = MC = price of concerned goods/service
P = MC
102 - Q = 2 ∴ Q = 100
back to the Total demand function ( p = 102-Q )
p = 102 - Q
p = 2
when Q = 0
p = 102 - Q = 102
hence; Total consumer surplus = 0.5 * ( 102 - 2 ) * ( 100-0 ) = $5000 i.e. fee charged by monopolist per customer
marginal / socially optimal price charged = $2
Total Fixed rate/part that the monopolist will charge from 100 customers
= (100*5000) = $500,000