Lecture 12A - Two-Part Tariff

New Book: https://www.amazon.com/dp/B0G45MKBZT This video explains how and when using a two-part tariff---A fixed fee plus a fee per unit consumed---can raise profits, as well as the impact on consumers. 0:00 The Definition of the Two-Part Tariff 0:17 Examples in Practice 0:50 Definitions: Fixed Fee vs “Tariff” 1:06 With One Consumer: Graph Set Up 2:05 One Consumer: If Price Above MC 3:50 One Consumer: DWL 4:45 One Consumer: Maximize profit with P=MC 5:20 With Two Consumers: Graph Set Up 6:48 Two Consumer Solution: Price Above MC 7:15 Graphical Demonstration For more economics content, visit https://micro-econ.com