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A what is thenbspuse feenbspin the two-part tariff the

Managerial Economics.

Please show math used, clearly and step-by-step. Thanks!

All 500 consumers in a market have identical demand for a product that is described by individual demand curves P=40-2q. A monopolist produces the product and has a cost function of TC(Q)=10000+8Q. (Answers must be within 1 of the true value to count as correct.)

A) What is the use fee in the two-part tariff the maximizes profits?

B) What is the entry fee in the two-part tariff the maximizes profits?

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