p(y) = MC (y), i.e., it chooses an output level where the MC curve cuts the demand curve. Let us denote the output level by y\". The twopart tari' solution to the monopoly problem does much the same as above= except that it slaps an entry fee into the market on top of the price, and by setting the fee equal to the consumer surplus, it extracts maximum prot. Thus the output chosen here is also y\". Again draw a graph to illustrate the above. The price schedule: in the rst case, the price schedule is the entire inverse demand curve up to the point y\