18. Suppose that a monopolist firm sells in two cities, A and B, each with a different demand curve: ga(p) = 300 p and gp(p) = 400 3p. Total costs are given by (Q) = 30Q, where @ = g4 + gp. Consider two scenarios: (i) the firm is forced to set the same price 9 in both cities; and (ii) third-degree price discrimination. What is the magnitude of the difference in profits between these two scenarios? (a e) 100/3 ) ) ) (d) ) f) ( (f) None of the above Solution: b