2. (26 points) Consider a third-degree price-discriminating airline which is a monopoly on a particular route. This airline is offering two fare classes: business and economy. Suppose that inverse demand for business passengers is P. (y) = 100 y, and inverse demand for economy passengers is P26/2) = 50 - 2yz. And let the cost curve be c(y) = 2y2 where y = y + Yz. a. (8 points) Calculate the profit maximizing price and output in both groups and total profit of the monopoly. Suppose that now government prohibits price discrimination. b. (10 points) Find the total demand for airline tickets and calculate the monopolist's profit maximizing price and output. Compare the profit with (a). (8 points) Is the society better off with or without price discrimination? Provide your answer by comparing consumer surplus, producer surplus, and deadweight loss in (a) and (b). C