Two-part tariff. There are equal numbers of two types of consumers. Type A consumers have the following demand curve: P = 10 - Q. Type B consumers have the following demand curve: P =12 - Q. Suppose that MC =5.

a. Find a two-part tariff that generates more than 25 in profit.

b. Try to find the profit maximizing two-part tariff, perhaps by experimenting with different prices. Spend no more than 20 minutes on this.

c. Find the best tariff if type A consumers are as before, while type B consumers have demand: P = 20 - Q.