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Suppose All Individuals Are Identical,and Their Monthly Demand for Internet

Question 99

Multiple Choice

Suppose all individuals are identical,and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2) q where p is price in $ per hour and q is hours per month.The firm faces a constant marginal cost of $1.Profit-maximizing two-part pricing results in the firm selling


A) 4.5 hours.
B) 10 hours.
C) 5 hours.
D) 8 hours.

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