Assume a two consumer world:

The demand for consumer 1 is: P = 100 - Q

The demand for consumer 2 is: P = 90 - Q

MC = ATC = $12

The current price is $12

a.Assume a firm charges each person the maximum entrance fee.What would each person pay?

b.Assume a firm charges each person the same entrance fee what would each person pay?

c.Assume the entrance fee is the same for each person and the firm also decides to charge a $20 price.What entrance fee should the firm charge each person?How much is the firm's profit?Is the profit higher or lower than in question b above?How much higher or lower?