The university museum has two types of visitors. One type is university

employees; and the other type is people non-affiliated with the university. All university

employees have identical annual demands for museum visits, given by

PP = 30 - QP (for each university employee)

where QP is the number of visits demanded if the price is PP per visit. Non-affiliated

people all have identical annual demands for museum visits, but differ from university

employees:

PN = 100 - QN (for each non-affiliated person)

where QN is the number of visits demanded if the price is PN per visit. The museum

can identify university employees by their university ID card, while a non-affiliated

person does not possess a university ID. The university's profit- maximizing museum

is contemplating two different pricing policies:

Policy 1

For university employees: An annual membership fee and an additional price-

per- visit. (Only university employees are eligible for this membership plan.)

For non-affiliated visitors: A single price- per- visit, with no membership fee.

(This price per visit is not necessarily the same as the university employee price

per visit.)

Policy 2

This policy would offer a different price- per- visit for each type of visitor, but no

membership fees at all.

The museum has a constant marginal cost of $6 per visit, regardless of the visitor's

type. For simplicity, assume that there is one university employee and one non-affliated

person in the target population. How much more profit does the best policy yield than

the other policy?