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Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 -

Suppose all individuals are identical, and their monthly demand for Internet access from a certain

leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per

month. The firm faces a constant marginal cost of $1.The profit maximizing two-part tariff results in the firm selling:

A. 4.5 hours

B. 10 hours

C. 8 hours

D. 5 hours

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