Suppose a store requires a membership to purchase products at the store. The demand is given by: = 10 The marginal cost of production (bringing each unit to the store) is $1. The store sets a membership fee of $40.5 and a price per unit of $1. Should the store owner that she should decrease the price to 0 so that they can charge a higher membership fee?

a. By how much can the membership fee be increased if the price is dropped to 0?

b. By how much would profits decrease if the price is dropped to 0?