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3 Imagine a monopoly with 100 consumers. Consumers may be of two types according to the following demand functions: 10 = 82:? ({All 10 =

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3 Imagine a monopoly with 100 consumers. Consumers may be of two types according to the following demand functions: 10 = 82:? ({All 10 = 291 {(13)} The marginal cost of the monopolist is constant and equal to 1 Euro. There are no xed costs- The percentage of consmners of each type is 50%- 1. (a) Compute the optimal tariffs for the monopolist if it is capable of perfectly discriminate between the two types of consumers. [b] Suppose the Government decides to ban this type of discrimination and forces the monopolist to set a uniform price equal to both consmners. \"That is the optimal uniform price for the monopoly? (Note: The Government does not care if the price is low or high} 4

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