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.What is the annual profit that the video store expects to make on an average customer if it engages in optimal two-part pricing?

A) $6
B) $7
C) $8
D) $9