Consumer surplus via an optimal two-part pricing strategy

Reference no: EM13697382

A local video store estimates their average customer's demand per year is Q = 7 - 2P, and knows the marginal cost of each rental is $0.5. How much should the store charge for an annual membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy? Please show work

Reference no: EM13697382

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