The following diagram illustrates two-part pricing with different consumers, Valerie and Neal. Assume that the firm is required to charge the same access fee and per unit price to both consumers. Assume these are the only two consumers and that the firm maximizes profit. The marginal cost of production is $10.

(a) Valerie (b) Neal 100 p, $ per unit p, $ per unit 80 De D1 A, = $3,200 A, = $1,800 20 . . . . . . . . . . . C. = $50 C, = $50 20... . . . . . . . . . . .. . B, = $600 10 B2 = $800 MC 10 MC 60 70 80 80 90 100 Q1, Units per day Q2, Units per day