Figure 16-5 -Refer to Figure 16-5.Suppose the Firm Represented in the Diagram

Multiple Choice

Figure 16-5

-Refer to Figure 16-5.Suppose the firm represented in the diagram decides to use a two-part pricing strategy 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 total revenue it can expect to collect from the fixed fee portion of the price?

A) $2,560
B) $5,760
C) $7,870
D) $10,240