A Local Video Store Estimates Its Average Customer's Demand Per

Multiple Choice

A local video store estimates its average customer's demand per year is Q = 7 − 2P,and it knows the marginal cost of each rental is $0.5.How much should the store charge for an annual membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy?

A) $9
B) $10
C) $11
D) $12