A utility company faces demand given by q = 40

Question

A utility company faces demand given by q = 40 - 0.1p, where p is the price per unit.
If the company adopts a two-tier pricing structure, the price per unit for the higher price that maximizes revenue is $____.
A) 266.67
B) 233.33
C) 166.67
D) 133.33

Quizplus · Accepted Answer

The Answer of A utility company faces demand given by q = 40 - 0.1p, where p is the price per unit.
If the company adopts a two-tier pricing structure, the price per unit for the higher price that maximizes revenue is $____.
A) 266.67
B) 233.33
C) 166.67
D) 133.33