Alpha Gear is a fitness apparel company. One of their best selling products are their joggers. The company sells joggers under a block pricing scheme that charges $13 per pair of joggers if the customer buys up to 10 joggers and $8 if they buy 11 to 20 joggers. The demand curve is Q- 1400 - 25P, and the marginal cost of making a pair of joggers is $5. What are the profits for Alpha Gear under this pricing scheme? O975 8600 OM00 12200
Alpha Gear is a fitness apparel company. One of their best selling products are their joggers. The company sells joggers under a block pricing scheme that charges $13 per pair of joggers if the customer buys up to 10 joggers and $8 if they buy 11 to 20 joggers. The demand curve is Q- 1400 - 25P, and the marginal cost of making a pair of joggers is $5. What are the profits for Alpha Gear under this pricing scheme? O975 8600 OM00 12200
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter13: Between Competition And Monopoly
Section: Chapter Questions
Problem 5DQ
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![Alpha Gear is a fitness apparel company. One of their best selling products are their joggers. The company sells joggers under a block pricing scheme that
charges $13 per pair of joggers if the customer buys up to 10 joggers and $8 if they buy 11 to 20 joggers. The demand curve is Q-1400 - 25P, and the marginal
cost of making a pair of joggers is $5. What are the profits for Alpha Gear under this pricing scheme?
8975
8600
3600
12200
000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7064a59e-7d2f-40a9-9214-946f284ee698%2F2d5635f9-e81b-42f7-937c-3fa196ff9fe4%2Futaia4s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Alpha Gear is a fitness apparel company. One of their best selling products are their joggers. The company sells joggers under a block pricing scheme that
charges $13 per pair of joggers if the customer buys up to 10 joggers and $8 if they buy 11 to 20 joggers. The demand curve is Q-1400 - 25P, and the marginal
cost of making a pair of joggers is $5. What are the profits for Alpha Gear under this pricing scheme?
8975
8600
3600
12200
000
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