A warehouse club has customers with identical demand curves, Q = 100 - 5P, where Q is the annual number of merchandise units and P is the price per merchandise unit. The marginal cost of a merchandise unit is $10. If the warehouse club uses the optimal two-part tariff strategy, it will earn producer surplus of _____ per customer.
A) $1,060
B) $75
C) $450
D) $250

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The Answer of A warehouse club has customers with identical demand curves, Q = 100 - 5P, where Q is the annual number of merchandise units and P is the price per merchandise unit. The marginal cost of a merchandise unit is $10. If the warehouse club uses the optimal two-part tariff strategy, it will earn producer surplus of _____ per customer.
A) $1,060
B) $75
C) $450
D) $250

A Warehouse Club Has Customers with Identical Demand Curves, Q