Hi,

I would appreciate your help with the explanation or formulas to this question. I want to make sure I did correct the process.

Thank you.

QUESTION 2: TOTAL 20 POINTS The Katy Art Museum is located just outside of Houston, TX. Aside from a permanent gallery displaying modern art paintings and sculptures, it organizes exhibitions of modern art pieces from local artists. Its demand function is Q = 12- 0.5P, and its cost function is C(Q) = 40. The museum currently charges $20 per visit. a) What is the museum's current prot, based on the information given above? b) What is the museum's prot-maximizing price? I c) What is the maximum prot that the museum can generate, using a single-price strategy? d) Management feels that it can increase its prots by adopting a two-part pricing strategy, where it charges only a xed per-month membership fee, and a per-visit fee equal to its marginal cost. e) What should be the amount of the membership fee, assuming that this fee is equal to the entire consumer surplus? i) What will be the museum prot if it adopts this two-part pricing strategy