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The representative consumer of a soft drink has a weekly demand given by the function P = 1 - 0.075Q and the cost of producing
The representative consumer of a soft drink has a weekly demand given by the function P = 1 - 0.075Q and the cost of producing the soft drink is C = 0.4Q (where Q is the number of cans of soft drink). Show that, instead of selling the product case by case, it is in the firm's interest to make the soft drink available in 8-can packages at a price equal to the cost of production plus consumer surplus. (hint: calculate the profit per consumer in both versions)
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