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An electric utility is going to use a block-pricing schedule with two blocks. They plan to charge p1 for the first q1 units and p2

An electric utility is going to use a block-pricing schedule with two blocks. They plan to charge p1 for the first q1 units and p2 for the subsequent units. The inverse demand function is p=600-q and marginal cost and the average total cost is $120. There is no fixed cost. What will be the maximum profit under optimal block pricing?

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