1. An internet provider can offer two speed levels: H (for high) or L (for low). The cost of production is zero for both speed levels. Consumers are interested in getting (at most) one unit of this product. There are two types of consumers: 0 Consumers of type 1 are willing to pay up to $200 for highspeed and up to $100 for low-speed (i.e., the consumer's surplus of such a consumer is 200 10 if he buys H at price p and 100 p if he buys L at price p); 0 Consumers of type 2 are willing to pay up to $80 for H and up to $60 for L. Let N1 and N2 denote the number of consumers of each type, respectively. Suppose N1 = 1000 and N2 = 2000. (a) Suppose the provider's technology is such that it cannot provide different speeds to different customers. That is, the rm can only offer a single quality to everyone. Find the price and quality chosen by a monopoly. (b) Suppose now that the provider has acquired new equipment that allow it to pro vide a different speed (either H or L) to each customer with a ip of a button. That is, the rm can now offer two types of services (H or L) at different prices, for customers to choose from. Assume the rm has to offer the same menu to everyone and nd the prices that maximize the rm's prots. (0) Compare the prots, consumer surplus, and social welfare under the singlespeed offering in (1a) and under the menu in (1b). ((1) Solve (1a), (1b), and (lc) assuming that N1 = 10 000 and N2 = 1 000