Multiple Choice
Figure 16-5
-Refer to Figure 16-5.Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price.What is the profit earned under this pricing scheme?
A) $5,760
B) $6,400
C) $7,680
D) $7,870
Correct Answer:
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