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Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee

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Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the competitive price. (This is also called an optimal two-part tariff.) What is the value of the consumer surplus from this pricing strategy? A) $2.560 B) $5,760 O $7.870 D) o On December 31,201, Coowear, Inc had a balance in its prepaid insu ance account of $59 400 Duning 2018 597000 was paic for insurance At the end of 2018, ater adjussing entines were secorded, the baiance the prepaid insurance account was47,500 urance expense for 2018 would be 108.900 92000 156 400 $11.900 Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the competitive price. (This is also called an optimal two-part tariff.) What is the value of the consumer surplus from this pricing strategy? A) $2.560 B) $5,760 O $7.870 D) o On December 31,201, Coowear, Inc had a balance in its prepaid insu ance account of $59 400 Duning 2018 597000 was paic for insurance At the end of 2018, ater adjussing entines were secorded, the baiance the prepaid insurance account was47,500 urance expense for 2018 would be 108.900 92000 156 400 $11.900

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