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Consider the market for a product with two users with the following demand P_1 = 5-0.5 Q_1, P_2=10-Q_2. Let Mc = 2 be the constant marginal cost of the monopolist. What is the optimal (profit-maximizing) two-part tariff that induces both types of consumers to buy? What is the optimal two-part tariff when only high-demand consumers purchase the good?
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