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(Two-Part Tariff #2 Cr) The Kiwi company (supplier) has introduced a new device called jPad. jPad is sold through Good Buy (retailer). Kiwi produces one

(Two-Part Tariff #2 Cr) The Kiwi company (supplier) has introduced a new device called jPad. jPad is sold through Good Buy (retailer). Kiwi produces one jPad at $200 and sells it to Good Buy at $400. Good Buy has estimated that demand for the jPad depends on the retail price (p) according to the demand function: D(p) = 2000 - 2p. With calculus/Excel used, optimal retailer's prices were calculated. (Independent pricing) The optimal retailer's price is $700. (Coordinated pricing) The optimal retailer's price is $600. In the two-part-tariff, the supplier sets a transfer price of $ ___.

A.

200

B.

800

C.

600

D.

700

E.

100

F.

500

G.

300

H.

400

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