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Assume your typical customer has the demand function q = 20 - p and your marginal cost is MC = 10 dollars, as illustrated in the graph. Then, the optimal block pricing strategy is
a) block size = 10 units and price per block = 50 dollars
b) block size = 10 units and price per block = 150 dollars
c) block size = 5 units and price per block = 75 dollars
d) block size = 5 units and price per block = 125 dollars
This document shows evaluation of alternative approaches to analysing the effectiveness of public policy and Assess the impact of government policies on selected areas.
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Required help using economic theory and applying to real world situations and current events.
Solve for the equilibrium price and quantity. Assume the price is expressed in dollars and the quantity is defined in 1,000's of units.
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