Let the Inverse Demand Curve for a Monopolist's Product Be $\frac { E } { Q } = \$ 70$

Multiple Choice

Let the inverse demand curve for a monopolist's product be P = 100 - 2Q and the marginal cost of production be constant at MC = 10. Suppose that the firm considers moving from a uniform pricing strategy to a two-block tariff where the first block provides 15 units at a price of P₁ = $70 and the second block provides an additional 15 units at a price of P₂ = $40. What is the average outlay schedule for the consumer?

A) $\frac { E } { Q } = \$ 70$ if Q?15 and $\frac { E } { Q } = 70 - 450 / Q$ if Q>15
B) $\frac { E } { Q } = \$ 70$ if Q?15 and $\frac { E } { Q } = 40 + 450 / Q$ if Q>15
C) $\frac { E } { Q } = \$ 70$ if Q?15 and $\frac { E } { Q } = 40$ if Q>15
D) $\frac { E } { Q } = \$ 70$ if Q?15 and $\frac { E } { Q } = 70 - 40 / Q$ if Q>15