Uniform pricing offer the same charge to all clients. Assistances of this strategy contain the comfort of administration and the client goodwill created by such a rule. The main difficulty is that an inflexible uniform pricing policy can effortlessly be matched or weaken by opponents.
But if the company will still use this kind of pricing strategy then it will produce 20 units of output, charge a price of $110, and earn a profit of $1090.
P = 115 - 0.25(20)
= 110
MC = 5 + 5q
= 5 + 5(20)
= 105
TC = 10 + 5q + 2.5q2
= 10 + 5(20) + 2.5(20)
= 160
= 160 – 105
= 55
Profit = 55 X 20
= 1200 – 110
= 1090
