3a)A monopolist firm sells its output to two types of fans: Hardcore and Casual.The demand curves for each group are

Q_H=50 - P_H

Q_C=70 - 2P_C

The monopoly's cost function is C = 100+20Q = 100+20(Q_H+Q_C).

If the monopoly charges one price to all customers, its marginal revenue function is __________

3b) A monopolist firm sells its output to two types of fans: Hardcore and Casual.The demand curves for each group are

Q_H=50 - P_H

Q_C=70 - 2P_C

The monopoly's cost function is C = 100+20Q = 100+20(Q_H+Q_C).

Still assuming the monopoly is charging one price for all customers, what is the monopoly's profit maximizing quantity (Q), price (P), and profit?Based on the individual demand curves, how much doeseach grouppurchase at this price?

3c) A monopolist firm sells its output to two types of fans: Hardcore and Casual.The demand curves for each group are

Q_H=50 - P_H

Q_C=70 - 2P_C

The monopoly's cost function is C = 100+20Q = 100+20(Q_H+Q_C).

Calculate themarginal revenue functionfor each subgroup.Based on only charging asingle price, what is the marginal revenue from each group, based on how much the firm will sell to each group (from 3b)?Explain how these marginal revenues are a signal to the firm that it can increase profit by price discriminating.Use the MR numbers to show there is a specific action the firm can take that will increase profit.

3d) A monopolist firm sells its output to two types of fans: Hardcore and Casual.The demand curves for each group are

Q_H=50 - P_H

Q_C=70 - 2P_C

The monopoly's cost function is C = 100+20Q = 100+20(Q_H+Q_C).

If the monopoly can now charge each group a different price, what prices should it charge?What quantity will it sell to each group?What will its new level of profit be?