The individual demand for a product has been estimated to be qd=32−2p, the firm’s cost function is C(q)=4q+25 and the marginal cost is 4. What is the optimal two-part tariff for this monopolist?
(a) A price per unit of $25 and a fixed fee of $144.
(b) A price per unit of $4 and a fixed fee of $288.
(c) A price per unit of $4 and fixed fee of $144.
(d) A price per unit of $4 and fixed fee of $32.
(e) None of the above.
(e) None of the above