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The average consumer at a firm with market power has an inverse demand function of P = 9 Q . The firm's total cost function
The average consumer at a firm with market power has an inverse demand function of P = 9 Q . The firm's total cost function is C = 3Q. If the firm engages in two-part pricing, what is the optimal fixed fee to charge each consumer?
Multiple Choice
$2
$18
$25
$10
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