3. Patxiko is a monopolist selling its famous alcohol, the Patxaran, at the border of France and Spain, in the beautiful Basque country. It identies the Spanish market with an inverse demand PS(Q) = 10Q and the French one with an inverse demand PF (Q) = 14 Q. Patxiko's total cost function is given by c(Q) = Q2/2. (a) The border between France and Spain is subject to thorough verication that no goods are purchased in one country and taken to the other. What level of output will Patxiko decide to produce in each country, and what are the corresponding prices? Compute Patxiko's prots. (b) Patxiko realizes that the French market is composed of 14 consumers, all identical, and that the Spanish market is composed of 10 consumers, all identical as well. He also made a recent investment that allows him to have a constant marginal cost MC = 2. Assume he can perfectly discriminate, what price will a Spanish/French consumer pay in total? What are the quantities consumed by each? Compute Patxiko's prots.