(Answered) Assume your typical customer has the demand function q 20

Economics

Assume your typical customer has the demand function q = 20 - p and your marginal cost is MC = 10 dollars, as illustrated in the graph. Then, the optimal block pricing strategy is

a) block size = 10 units and price per block = 50 dollars

b) block size = 10 units and price per block = 150 dollars

c) block size = 5 units and price per block = 75 dollars

d) block size = 5 units and price per block = 125 dollars

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