There are two groups of consumers. In the first group, each consumer has the inverse demand function P = 100 – 2Q. In the second group, each consumer has the inverse demand function P = 60 – 2Q. There are 5 consumers in each group, or 10 consumers in all. Marginal cost is always zero. The monopolist wants to maximize profits by designing a two-part tariff. Calculate the two parts of the tariff, and calculate profits.

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