A Local Video Store Estimates Its Average Customer's Demand Per

question 50

Multiple Choice

A local video store estimates its average customer's demand per year is Q = 7 − 2P,and it knows the marginal cost of each rental is $0.5.How much should the store charge for an annual membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy?

• A) $9
• B) $10
• C) $11
• D) $12

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Definitions:

Family Studies

A multidisciplinary area of research and applied study that examines the dynamics, roles, and relationships within families and their impact on individuals and societies.

Inherited Characteristic

A trait or attribute passed down from parent to offspring through the genes.

Monozygotic Twins

Twins that are genetically identical because they were formed from a single fertilized egg that split into two.

Genotype

The genetic constitution of an individual organism, often determining specific characteristics or traits.