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Matthew decides to open a bar on the street where there's no other bar (a monopoly). For any given night he would have a fixed

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Matthew decides to open a bar on the street where there's no other bar (a monopoly). For any given night he would have a fixed cost of $1,000 and a variable cost of $0.50 per drink. Thus, his cost function is given by C(Q) = 1000 + 0.5Q, where Q is the number of drinks sold. Suppose that 500 identical customers visit the bar in a given night and each individual customer's demand curve for drinks is given by Q = 10 - 2p, where p is the price of each drink. Assuming that Matthew seeks to maximize the profit and he decides to use a two-part pricing strategy, which of the following is true? O All of these. Matthew would sell 9 drinks per person in a given night O By using two-part pricing, Matthew's profit is higher than twice of the profit he would make as a single-price monopoly. O Matthew would charge an access fee of $20.25 and a price of $0.50 per drink

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