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There is only one bar at a beach, i.e. this bar is a monopoly. A typical customer has the demand function Q = 100 -

There is only one bar at a beach, i.e. this bar is a monopoly. A typical customer has the demand function Q = 100 - 2.5P. The marginal cost is $10 per customer. Compare profits between two scenarios: charging a single per-unit price vs using a two-part tariff.

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