A local video store estimates their average customer's demand per year is Q = 7 - 2P, and knows the marginal cost of each rental is $0.5.How much should the store charge for each rental if it engages in optimal two-part pricing?
A) $0.35.
B) $0.5.
C) $0.7.
D) $1.00.
Correct Answer:
Verified
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