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A Local Video Store Estimates Its Average Customer's Demand Per

Question 28

Multiple Choice

A local video store estimates its average customer's demand per year is Q = 7 − 2P,and it 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:

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