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A warehouse club has customers with identical demand curves: Q=100-5P, where Q measures the annual number of merchandise units and P is the price per merchandise unit

Economics

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A warehouse club has customers with identical demand curves: Q=100-5P, where Q measures the annual number of merchandise units and P is the price per merchandise unit. The marginal cost of a merchandise unit is $10. If the warehouse club uses a two part tariff strategy, it will earn producer surplus of _ per customer.

a. $1,060

b. $75

c. $450

d. $250