Flicker has estimated that the demand equation of a typical subscriber is P = 122Q, where Q is the number of monthly on-line video rentals. The marginal cost of each on-line video rentals is $2 per month.Suppose that Flicker practices two-part pricing.How much should Flicker charge to become a member?

Answers:

a.

$15

b.

$50

c.

$25

d.

$10

e.

$40