Two-Part Tariff Problem: Part | Suppose that: 0 each of a rm's customers has the following demand curve: P = 20 2Q. 0 Suppose also that the rm's total cost function per customer is TC = 8Q. Answer each question below on a per customer basis (Q is the amount each customer buys, not the number of customers, and this approach works her to get the right answer). The rm is considering three pricing strategies: 0 Strategy 1: A single per unit fee. (No entrance fee) a) Determine the rm's total revenue function. total revenue per customer as a function of the quantity that customer buys. b) Determine the rm's marginal revenue function (again, per customer). c) What is the marginal cost per unit sold to a customer. (Note -- in general, this would be harder but because there is constant marginal cost CD Set marginal revenue equal to marginal cost and solve for the prot maximizing output per customer. e) Determine the prot maximizing price using this strategy. f) Determine the total revenue per customer at the price and quantity found in parts d and e above. g) Determine the total cost per customer at the output level in part d above. h) Determine the prot that the rm will make from each customer. Two-Part Tariff Problem: Part Two Continue to use the information on cost and demand in the previous question, but now analyze Strategy 2: An entrance fee with no per unit charge. a) Use the demand curve equation to determine how much each customer will purchase if there is no per unit charge (that is, P = O). b) Determine the consumer surplus that the rm can charge each customer as an entrance fee when price is zero. c) What is the total cost per customer at the quantity consumed by each customer in part a? d) Determine the prot that the rm will make from each customer. (Remember that the total revenue per customer will be the entrance fee since there is no per unit charge.) Two-Part Tariff Problem: Part Three Continue to use the information on cost and demand in the previous question, but now analyze Strategy 3: An entrance fee and a per-unit fee equal to marginal cost. a) What is the marginal cost and therefore the price charged per unit based on this strategy? b) At the price found in part a, what quantity will each customer purchase? c) Determine the rm's revenue per customer from the per unit charge, using the answers to parts a and b. d) Determine the consumer surplus that the rm can charge each customer as an entrance fee. e) Determine the total revenue from each customer using the answers to parts c and cl. f) Determine the total cost at the quantity found in part b. g) Determine the prot that the rm will make from each customer. Two-Part Tariff Problem: Part Four Which of the three strategies in the two-part tariff problem will provide this rm with the greatest prot per customer