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Gooble Pay is a pay-per-view movie provider that has zero marginal cost and faces the following (inverse) demand function for its representative movie watcher: P=200.4Q.
Gooble Pay is a pay-per-view movie provider that has zero marginal cost and faces the following (inverse) demand function for its representative movie watcher: P=200.4Q. Gooble Pay decides to use volume pricing to maximize profits. What is the optimal flat fee Gooble Pay should charge the representative watcher for unlimited access?
1. $20
2. $50
3. $1,000
4. $500
5. $25
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