2) In British Columbia, Canada (where Professor Chakraborty went for grad school) a company named after Tim Hortons runs a monopoly on a sweet snack called Timbits! Suppose the demand for Timbits is p = 90 -Q and the cost function is C = Q. i) How much would the consumer surplus, producer surplus and DWL be in case Tim Hortons a single-price monopoly? ii) Suppose Tim Hortons could install a device in its premises that could im- mediately predict the willingness to pay of every unsuspecting customer enteringits franchise premises, and charge them that corresponding amount! Addition- ally, suppose they could also stop resale of products, and thus become a first degree price discriminating monopoly. How much would the consumer surplus, producer surplus and DWL be in this case? iii) What is the maximum that Tim Hortons should be willing to pay for such a device? (Hint: How much more profit does it make if it gets the device?) Do you think it would be ethical to use such a device