VooBoo is a monopoly that provides a web streaming service that sells subscriptions at two levels:

-Basic

-Premium (includes everything at Basic level and more)

Research shows that VooBoo customers are in 3 groups:

Group 1: Those who are only interested in buying the Basic level

-their reservation price for Basic is $10

Group 2: Those who are only interested in buying the Premium level

-their reservation price for Premium is $40

Group 3: Those who are open to buying either level

-their reservation price for Basic is $10

-their reservation price for Premium is $40

Assume that production cost is zero --> maximizing revenue = maximizing profit

What price should VooDoo charge for each subscription to guarantee sales and maximize profit? Explain your pricing.

*Think about how you should consider consumer surplus in your pricing