A monopolist seller faces two buyers, A and B. Each buyer has her own incremental RP for 1,2,3 or 4 units of SOMA as shown in the below table.

Quantity | First Unit | Second unit | Third Unit | Fourth Unit

A's RP. | 7. |. 5. |. 3. |. 1

B's RP. |. 14. |. 10. |. 6. |. 2.

So, A buyer has a total RP of 15 for 3 units of SOMA.

1. Suppose that the seller cannot separate the buyers, and must charge the same per-unit price to both of them. What price maximizes the seller's revenue?

To answer this, first fill in the table below. You may restrict attention to the prices in the table (price range 2-8), and state how many units of SOMA each buyer would demand for each of these prices.

Price |. 2. |. 3. |. 4. |. 5 |. 6 |. 7. |. 8.

A's demand |. |. |. |. |. |. |. |

B's demand |. |. |. |. |. |. |. |

Second, calculate the revenue the seller would earn at each of those prices, and determine the best price.

2, Now suppose the seller can distinguish the A buyer from the B buyer, and furthermore cam charge them different prices. What two prices should the seller set to the two buyers to maximize revenue? For this problem consider any price (in the range 1-14).