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

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 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