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2 Suppose a rm faces two types of consumers. Consumers of type 1 and 2 have different demand functions- Their individual demand functions are: For
2 Suppose a rm faces two types of consumers. Consumers of type 1 and 2 have different demand functions- Their individual demand functions are: For type 1: P=42q For type 2: p=84q Assume the marginal cost of production is constant and equal to zero. There are a total of a 100 consumers where 60% are of type 1. (a) Compute the optimal tarrifs? quantities and prots if the monopoly rm could perfectly discriminate amongst consumers. (1)) Compute the aggregate demand of both markets. Compute the optimal uniform price if the Govermnent would force the monopoly to charge an uniform price i.e- a tariff T(q} = p x q. (c) Assume now the monopoly cannot distinguish between consumers eXante. Assume the Gov ernment allows it to use twopart tarrifs. Find the optimal twopart tarrif that maximizes the monopolist's prots
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