aul's firm produces the same good as Sal's firm. The total cost of producing qp units in Paul's firm is Cp( qp ) = 8.6 qp + 1.1. The total cost of producing qs units in Sal's firm is Cs( qs ) = 8.6 qs + 1.1. What is the efficiency loss if each person's firm produces half of a total of 523 units?
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
Paul's firm produces the same good as Sal's firm.
The total cost of producing qp units in Paul's firm is Cp( qp ) = 8.6 qp + 1.1.
The total cost of producing qs units in Sal's firm is Cs( qs ) = 8.6 qs + 1.1.
What is the efficiency loss if each person's firm produces half of a total of 523 units?
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