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Consider the following simple two-part tariff problem. There are two consumers. The first consumer's demand curve is and the second consumer's demand curve is P

Consider the following simple two-part tariff problem. There are two consumers. The first consumer's demand curve is and the second consumer's demand curve is P = 10-2Q and the second consumer's demand curve is P = 9-3Q. The marginal cost is MC = 1.

a) If the firm wants to charge the fixed fee that is equal to one consumer's surplus, how should he sets the two-part tariff T and P, where P is the price?

b) Now firm want to set an optimal two-part tariff. Write out the firm's profit function and solve optimal T and P

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