1. Phillips Industries manufactures a certain product that can be sold directly to retail outlets or to the Superior Company for further processing and eventual sale as a completely different product. The demand for each of these markets is Retail Outlets : P1 = 60 -2Q1 Superior Company : P2 = 40 - Q2 where Pi and P2 are the prices charged and Q1 and @2 are quantities sold in the respective markets. Phillip's total cost for the manufacture of this product is TC [ 10 + 8Q where Q = Q1 + Q2. a. What are the Phillip's total profits if the firm is effectively able to charge different prices in the two markets? b. Calculate the profit maximizing level of price and output if Phillips is required to charge the same price per unit in each market. What are Phillip's profit under this condition