(3) Suppose instead that the monopolist wants to engage in second degree price discrimination by employing a two part tariff. Suppose also that the market consists of two types of consumers that can be represented by the following demand equations. Consumer Type One:Consumer Type Two:.Assume that output can be produced at a constant marginal cost of $10 which also equals average total cost.

(a) If the monopolist wants to maintain both types of consumers, find the price per unit and the amount of the tariff that will maximize the monopolists total profits.

(b) Show the above answer graphically.

(c) If the monopolist wants to retain only its most profitable consumers, find the price per unit and the amount of the tariff that will maximize the monopolists total profits.

(d) Show the above answer graphically.

(e) Which pricing strategy would you suggest, (a) or (c)? Explain your answer.