Suppose all individuals are identical, and their monthly demand for Internet access from a certain
leading provider can be represented as p = 5 - (1/2) q where p is price in $ per hour and q is hours per
month. The firm faces a constant marginal cost of $1. If the firm will charge a monthly access fee plus a per
hour rate, according to two-part tariff pricing, the total monthly access fee that the firm will collect from all
the buyers taken together equals?
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