Question 4

Question 4 Inhabitants of the Ruritanian Republic consume Brawndo (the thirst mutilator) as if it were water. In fact, Brawndo has almost entirely replaced water in Ruritania, except in toilets. The inverse demand curve of each Ruritanian inhabitant for Brawndo is given by p = 120-2q. The Brawndo Corporation is the monopoly supplier of Brawndo in Ruritania. The cost to Brawndo of supplying q units to an individual Ruritanian is C(q) = 0.5q2. What is the profit maximizing two part tariff it should set