In what range of muffins need for consumer to select pricing, Microeconomics

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In what range of muffins need for consumer to select pricing

A muffin stand lets consumers choose among a menu of three pricing options:

(a) a monthly subscription fee of $200 and a price per muffin of $4;

(b) a monthly subscription fee of $300 and a price per muffin of $3; or

Suppose that muffins are incredibly addictive, so consumers have perfectly inelastic demand for them, up to a certain saturation point. In what range of muffins per month would that saturation point need to be for a consumer to select pricing option b?

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Microeconomics: In what range of muffins need for consumer to select pricing

Reference No:- TGS068916

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Recent Questions Asked Microeconomics

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: In what range of muffins need for consumer to select pricing

Reference No:- TGS068916

Recent Questions Asked Microeconomics

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