A local video store estimates its average customer's demand per year is Q = 20 ? 4P, and it knows the marginal cost of each rental is $1.00. How much should the store charge for an annual membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy?
A. $40
B. $64
C. $32
D. $20
Answer: C
Economics
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Indicate whether the statement is true or false
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Refer to Scenario 5.2. Randy's expected expense for his car is
A) $20,000. B) $19,000. C) $18,000. D) $17,500. E) $15,000.
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