A firm with market power faces the demand function q = 150 - 10P. The firm's marginal cost function is MC(q) = 2 + 0.1q. If the firm establishes a block-pricing structure with two prices, the higher price that the firm will use to maximize producer surplus is $____.
A) 9.76
B) 8.63
C) 7.45
D) 6.42

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The Answer of A firm with market power faces the demand function q = 150 - 10P. The firm's marginal cost function is MC(q) = 2 + 0.1q. If the firm establishes a block-pricing structure with two prices, the higher price that the firm will use to maximize producer surplus is $____.
A) 9.76
B) 8.63
C) 7.45
D) 6.42

A Firm with Market Power Faces the Demand Function Q