3. A monopolist sells output to two geographically separated markets. Arbitrage is not possible. The inverse demand curve in market 1 is given by P1= 100 - 2Q1 and in market 2, it is P2 = 50 - 2Q2. The marginal cost of production is zero.

a. Find the price charged and the quantities sold in each separate market

b. Find the profits of the firm.

c. Find the consumer surplus.

d. Assume a new law prohibits price discrimination and requires the monopolist to charge the same price in both markets. Find the price and the quantities sold in each market.

e. Has welfare increased, decreased or remained unchanged relative to part a.?