arsing the bridge is $MC=5+0$ and $P$ is the toll in dollars. If the marginal crossing the bridge?

a$)$ What is the output that will maximize the profit in each period?

b$)$ What is the optimal price within that region? And determine whether there is price discrimination based on different region.

The demand for health club services is $Q=350-2P$ and the marginal cost of providing these services is $MC=100.$ If a two$-$part tariff pricing system is used, what is the optimal price and quantity combination the club should charge?

$7\mathrm{.}11$ Suppose Quaker Oats has estimated the price elasticity of demand for its cereal at its middle$-$class market at $E_{pM}=-1\mathrm{.}5$ and at its working$-$class market at $E_{pW}=-2\mathrm{.}0.$ Further suppose that the marginal cost of producing each box of cereal is $MC=$$$2.$ The marketing department has suggested introducing coupons to attract more buyers from the workingclass market. How big should the amount of the discount offered in the coupons be$?$