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please explain and show work, thank you!! 4. Two-part Tariff A bar produces a good (think of it as beer and all other related services)

please explain and show work, thank you!!

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4. Two-part Tariff A bar produces a good (think of it as beer and all other related services) with a constant marginal cost of $5 per unit. Assume for now that all consumers have the same demand Q = 10 P and there are 100 students. a) Suppose that the bar cannot price discriminate and has to charge the same price P\" for the good. Calculate the price that maximizes profits and the amount of profits. b) Suppose now that the bar can charge a two-part tariff (T, P"), where T is the cover (entrance fee) and P\" is the price per unit, i.e. a student that goes in the bar spends T + P**Q. Calculate the two-part tariff that maximizes profits and the amount of profits. Why are P\" and P\" different? c) Assume now instead that there are two types of students. Type 1 students have demand 01 = 10 P and type 2 students have demand 02 = 10 E. The population is still 100 and there are 50 of each type. Show that only selling to Type 2 students gives you more profits than trying to serve both groups

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