Figure 16-4 -Refer to Figure 16-4.Suppose the Firm Represented in the Diagram

Multiple Choice

Figure 16-4
-Refer to Figure 16-4.Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that such that it charges a fixed fee and a per-unit price equal to the competitive price.(This is also called an optimal two-part tariff.) What is the quantity it should produce?

A) 240 units
B) 320 units
C) 480 units
D) 560 units