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. 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. F =
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![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.
F =](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F73c1b0d0-dd28-4775-8924-5c2a85f9b334%2F24cfcc19-26c9-4a50-bbb6-25be949ea25e%2Ffw3l5ly_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
F =
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