when a monopolist uses two-part pricing and faces identical consumers, charging a price higher or lower than the competitve price,

P=20

(with a lump-sum fee equal to consumer surplus), reduces the monopoly's profits.The figure to the right shows the demand curve for a representative consumer. Determine the profits (per-unit profits + collected fee from the consumer) for each of the following per-unit prices. Assume fixed costs are negligible.

Profit from two-part pricing when price is

p=20

Profit from a two-part pricing when price is

p=50

Profit from a two-part pricing when price is

p=5

1207 110- p, $ per unit m D 0 10 20 30 40 50 60 70 80 90 100 110 120 q, Units per day