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13. Let the inverse demand curve for a monopolist's product be P = 100 - 20 and the marginal cost of production be constant at

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13. Let the inverse demand curve for a monopolist's product be P = 100 - 20 and the marginal cost of production be constant at MC = 10. Suppose that the firm considers moving from a uniform pricing strategy to a two-block tariff where the first block provides 15 units at a price of P: =$70 and the second block provides an additional 15 units at a price of Pr=$40. How much does the monopolist's profit rise with this scheme? $225 $337.50 $450.50 d) $512 Ans: B

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