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The nearby graph represents the demand curve of an individual consumer of a greeting card's website. The firm has market power and can prevent resale. It practices block pricing by offering $0.25 per card for the first order of 100 cards, but will lower the price to $0.20 each for the next 25 cards, and $0.10 each for the next 50 cards (for a total of 175 cards). What is the producer surplus of the firm when it can sell 175 cards? Price ($/greeting card) B $0.25 0.20 A C 0.10 E 0.05 MC MR D 100 125 175 Quantity of cards $26.25 $2.50 $29.375 $20

The nearby graph represents the demand curve of an individual consumer of a greeting card's website. The firm has market power and can prevent resale. It practices block pricing by offering $0.25 per card for the first order of 100 cards, but will lower the price to $0.20 each for the next 25 cards, and $0.10 each for the next 50 cards (for a total of 175 cards). What is the producer surplus of the firm when it can sell 175 cards? Price ($/greeting card) B $0.25 0.20 A C 0.10 E 0.05 MC MR D 100 125 175 Quantity of cards $26.25 $2.50 $29.375 $20

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 2P
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The nearby graph represents the demand curve of an individual consumer of a greeting card's website. The firm has market power and can prevent resale. It practices block pricing by offering $0.25 per card for the first order of 100 cards, but will lower the price to $0.20 each for the next 25 cards, and $0.10 each for the next 50 cards (for a total of 175 cards). What is the producer surplus of the firm when it can sell 175 cards? Price ($/greeting card) B $0.25 0.20 A C 0.10 E 0.05 MC MR D 100 125 175 Quantity of cards $26.25 $2.50 $29.375 $20
Transcribed Image Text:The nearby graph represents the demand curve of an individual consumer of a greeting card's website. The firm has market power and can prevent resale. It practices block pricing by offering $0.25 per card for the first order of 100 cards, but will lower the price to $0.20 each for the next 25 cards, and $0.10 each for the next 50 cards (for a total of 175 cards). What is the producer surplus of the firm when it can sell 175 cards? Price ($/greeting card) B $0.25 0.20 A C 0.10 E 0.05 MC MR D 100 125 175 Quantity of cards $26.25 $2.50 $29.375 $20
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