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klcarrasquillo klcarrasquillo
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5 years ago
The WWQX Co. sells shirts. Shirts with the company label on the tag are perceived to be of higher quality than shirts with the store's label. Yet, shirts are of identical quality regardless of the label. The demand for perceived high-quality shirts is ph = 80 - qh. The demand for perceived low-quality shirts is pl = 19 + ph - ql. The firm can produce shirts at TC = 2qh + 2ql. What prices are charged for the low-quality and for the high-quality shirts?
A) pl = 31; ph = 41
B) pl = 51; ph = 41
C) pl = 17; ph = 45
D) pl = 35; ph = 28
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Microeconomics

Microeconomics


Edition: 8th
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Chris R.Chris R.
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