Every consumer has the inverse demand function P = 40 – Q, and marginal cost is 1.  There are 10 consumers. The monopolist wants to maximize operating profits by designing a two-part tariff.  Calculate the two parts of the tariff, and calculate profits

Managerial Economics: A Problem Solving Approach
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Chapter14: Indirect Price Discrimination
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Every consumer has the inverse demand function P = 40 – Q, and marginal cost is 1.  There are 10 consumers. The monopolist wants to maximize operating profits by designing a two-part tariff.  Calculate the two parts of the tariff, and calculate profits

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