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A firm with market power faces the demand function q = 150 - 10P. The firm's marginal cost function is MC(q) = 2 + 0.1q. If the firm establishes a block-pricing structure with two prices, what two prices will the firm use to maximize producer surplus?
CCA Rate
Stands for Capital Cost Allowance rate, which is a tax deduction in Canada that represents a business's investment in certain assets depreciating over time.
Tax Rate
The Tax Rate is the percentage at which an individual or corporation is taxed by the government on its income.
EAC
Stands for Equivalent Annual Cost, a concept used in capital budgeting to represent the cost per year of owning and operating an asset over its entire lifespan.
Maintenance
Activities conducted to keep equipment or facilities in an operational condition or repair it to its optimal state.
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