A local video store estimates its customer's inverse demand per year is P = 30 - 4Q, and it knows the marginal cost of each rental is $5. If you engage in the first degree price discrimination, the profits are: A) $80.125 B) $84.5 C) $178.125 D) $86.75.

A local video store estimates its customer's inverse demand per year is P = 30 - 4Q, and it knows the marginal cost of each rental is $5. If you engage in the first degree price discrimination, the profits are: A) $80.125 B) $84.5 C) $178.125 D) $86.75.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 1.6CE

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