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Can anyone help me, thanks 2. [25 MARKS] Tuan lives in a town with only one movie rental store. Suppose Tuan's demand for movie rentals

Can anyone help me, thanks

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2. [25 MARKS] Tuan lives in a town with only one movie rental store. Suppose Tuan's demand for movie rentals per month is Q = 162P. The movie store currently charges $5 per movie but is thinking of adding a flat monthly cardholder fee and dropping the price to $2 per rental. a.) Determine the largest cardholder fee that Tuan will pay at this new price. b.) Assuming that the rental store has a constant marginal cost of $2, show which strategy is more protable and also use a graph to demonstrate your results. as 8 .. 6 8 MR 12 16 O, rentals Figure 2: The effect of rental change

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