Compared to the optimal uniform price

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A firm sells to consumers who each have a demand demand function given by QD = 80 - P. It has constant marginal cost C = 20 with no fixed cost. Compared to the optimal uniform price, a policy of "buy the first 20 units for $60 each and get the next 20 for $40 each" would yield

A. $500 higher profits

B. $300 higher profits

C. $100 higher profits

D. The same profits because on average, the price is the same

Reference no: EM132244232

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