Question 6 Suppose that a firm currently sells its product at a price of P = 30. The firm has recently discovered that there are some "high demand" costumers, with individual demand functions Q(P) = 40- P. The firm wants to offer a "contract" to these costumers which would allow them for a fixed fee F to purchase the good for 20 Dollars per unit. Determine the maximum value of F that the firm could charge such that high demand costumers would be willing to buy the contract. %3D F =

Question 6 Suppose that a firm currently sells its product at a price of P = 30. The firm has recently discovered that there are some "high demand" costumers, with individual demand functions Q(P) = 40- P. The firm wants to offer a "contract" to these costumers which would allow them for a fixed fee F to purchase the good for 20 Dollars per unit. Determine the maximum value of F that the firm could charge such that high demand costumers would be willing to buy the contract. %3D F =

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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