Question: A local video store estimates its average customer's demand per year is Q = 7 2P, and it knows the marginal cost of each

A local video store estimates its average customer's demand per year is Q = 7 − 2P, and it knows the marginal cost of each rental is $0.5. How much should the store charge for an annual membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy?
(A) $9,
(B) $10,
(C) $11,
(D) $1

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