$(4$ points$)$

A local video store estimates its typical customer's inverse demand is $P=7-1\mathrm{.}4Q,$ and it knows the marginal cost of each rental is $$0\mathrm{.}97.$

$($In all answers use up to two decimals.$)$

Two$-$part pricing

How much should the store charge for each rental if it engages in optimal two$-$part pricing?

$

What is the fixed fee that they should charge it engages in optimal two$-$part pricing?

$

How much producer surplus will they make on each customer if it engages in optimal two$-$part pricing?

$

How many units will they sell to each customer?

Block Pricing

If they use block pricing instead, how many should they put in the package?

What should they charge for the entire package?

$

Hint: