1. Which of the following pricing concepts for the monopolist requires the strongest assumptions?

a) Third Degree price discrimination

b) Second Degree price discrimination

c) Peak-Load Pricing

d) First Degree price discrimination

2. Please suggest one example of how you could implement third-degree price discrimination in reality.

Name two assumptions that must hold for the pricing to work.

3. Peak-Load Pricing is an example of second-degree price discrimination.

a) True

b) False

4. You are in charge of a firm that holds a monopoly. Your Marginal Costs are constant at $10. You noticed that you could divide the total market into two submarkets. Submarket A has the demand curve: Q(A) = 110 - P(A). Submarket B has the demand curve: Q(B) = 30 - P(B). You are planning to implement third-degree price discrimination. Please calculate Q(A), Q(B), total quantity, P(A), and P(B). Please upload a file with your calculations and solution. (Please provide results and suggesting a way to calculate the result)