As an alternative to regulating the supplier such that price covers average total cost, suppose that a two part tariff were used to generate revenue. This scheme involves charging the MC for each unit that is purchased and in addition charging each buyer in the market a fixed cost that is independent of the amount he purchases. If an efficient output is supplied in the market, estimate the total revenue to be obtained from the component covering a price per unit of the good supplied, and the component covering fixed cost.