Scenario 3- Each potential customer for a firm has a demand curve of P = 20 – 2Q and the firm has a constant marginal cost of $4 (it may be helpful if you graph the Demand and MC curves where Demand has vertical intercept of $20 and horizontal intercept of q = 10 units.) Q31 (Using Scenario 3) If the firm charges customers a flat rate of $4 per unit, BUT before being able to buy at $4 per unit customers must pay a lump sum membership fee, which of the following is the maximum amount customers would be willing to pay for the membership fee? A $36 B $49 C $64 D $81
Scenario 3- Each potential customer for a firm has a demand curve of P = 20 – 2Q and the firm has a constant marginal cost of $4 (it may be helpful if you graph the Demand and MC curves where Demand has vertical intercept of $20 and horizontal intercept of q = 10 units.) Q31 (Using Scenario 3) If the firm charges customers a flat rate of $4 per unit, BUT before being able to buy at $4 per unit customers must pay a lump sum membership fee, which of the following is the maximum amount customers would be willing to pay for the membership fee? A $36 B $49 C $64 D $81
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 6SCQ: A firms marginal cost curve above the average variable cost curve is equal to the films individual...
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