7. Now, you are managing Luge service line for the company Skycircle. You found that Skycircle has been suffering from customer dissatisfaction mainly due to long waiting time. At the same time, one of your colleagues in the marketing department has advised you that many potential customers would like to enjoy the Luge at night if the price is lower than the regular price (for the day-time). Based on the following linear demand distribution, examine if price differentiation could generate more profit and average waiting time would be reduced: Demand 15,000 c=$5.00 $20 Price a) Based on the demand distribution above, calculate the optimal single price and its corresponding profit. b) Based on the demand distribution above, calculate optimal "one-to-one" pricing profit. c) Now, you divide the customers into two segments according to WTP (Willingness To Pay) as follows: all customers with WTP > $12, all customers with WTP < $12. Segment 1 (e.g., day-time customers) Segment 2 (e.g., night-time customers) Find the optimal price for EACH segment and calculate the total profit. (6 marks) d) Explain whether the firm can benefit from price differentiation. Further, does price differentiation reduce current customers' waiting time? If not, discuss how you can actually make price differentiation effectively reduce customer waiting time.