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A local flower store determines its average customer's demand per year is Q=10-4P, and knows the marginal cost of the good it sells is $1.0.
A local flower store determines its average customer's demand per year is Q=10-4P, and knows the marginal cost of the good it sells is $1.0. What is the amount that the flower store should charge as a fixed fee if it engages in optimal two-part pricing?
a. $1
b. $2.5
c. $4.5
d. $6
If you could show how you got there it would be greatly appreciated.
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