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Consumer demand for a product: Devise a two-part tariff that will exhaust surplus

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1. All Consumers have identical demand for a product. Each person's demand curve is P=30-2Q. The marginal cost of production is $2. Devise a two-part tariff that will exhaust all counsumer surplus.

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The response displays the formulas and then works the problem to a solution.

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For two part tariff, Fix the price per unit equal to marginal cost = $2.
Quantity demanded at ...

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