A company offers quantity discounts on its family photo holiday cards (cards that it prints with the customer’s family photo on it). The price for the first 30 cards is $0.40 per card, and for any additional cards, the price is $0.10 per card. Suppose that John’s inverse demand curve for holiday cards is given by P = 0.6 − 0.01Q. How many holiday cards will John purchase to maximize his surplus? Explain your answer.
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