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a) Differentiate between first-degree and second degree price discrimination. [6 Marks] b) Suppose a monopolist has a constant marginal cost of MC = 2

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a) Differentiate between first-degree and second degree price discrimination. [6 Marks] b) Suppose a monopolist has a constant marginal cost of MC = 2 and faces a demand curve P = 20 - Q. i) ii) Suppose price discrimination is not allowed. How large will the producer surplus be? [4 Marks] Suppose the firm can engage in perfect first-degree price discrimination. How large will the producer surplus be? [5 Marks]

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