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Economics

A local surf store estimates that their average customer's demand per year is P = 3.5 - 0.5Q, and knows that the marginal cost of each rental is $0.5.

a- How much should the store charge for an annual membership in order to extract all the consumer surplus using an optimal two-part pricing strategy?

b- How much should the store charge for each rental if it uses an optimal two-part pricing strategy?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9293680

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