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A club knows that each member's demand per year is Q = 10.00 – 2.00*P and that the marginal cost is 2.00. Assume that the club uses a profit maximizing

two-part tariff.What is the profit maximizing fixed fee (sometimes referred to as the "fixed part" in the two-part tariff) for an annual membership? a) 2.00 b) 3.50 c) 7.00 d) 9.00

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