Economics

. A new gym 6 opening up in town and is considering implementing a two-part tariff pricing scheme for its potential regular gym-goers. These customers are willing to pay a maximum of $10 for their first gym visit in a month, and their willingness-to-pay decreases by $1 for each additional visit within the same month. Regular gym-goers typically visit the gym twice a week, which equates to 8 visits per month. The gym's varie ble cost per visit is $2. The two-part tariff pricing scheme consists of a per- unit fee for each gym visit and a fixed upfront fee for a monthly membership. Customers who pay the fixed upfront fee are still required to pay the per- unit fee for each gym visit during the month. What should be the optimal per-unit fee for each gym visit in the two- part tariff pricing scheme? Why is this fee the optimal fee? What is the highest fixed upfront fee for the monthly membership in the two-part tariff pricing scheme? Provide a detailed explanation of your ca bubtions and reason ing- [8 points]