A restaurant chain is deciding where to locate its next branch. After conducting research in two neighbouring towns, they find that the demand curves can be expressed as follows: Market A p = 15 - Q; Market B p = 11 - Q The company estimates its total cost function to be TC = 4Q. Calculate: a) quantity, total revenue and profit when the company maximizes its profit and charges the same price in both markets. b) quantity, total revenue and profit when the company charges different prices in each market and maximizes its total profit. c) Firms with market power can set prices above marginal cost. If the restaurant chooses to charge a different price in each town, what is this pricing strategy called? What is the rationale for this pricing practice? d) The Economist publishes its famous Big Mac Index that analyses the price of a McDonald's Big Mac across the world. Is this an example of third-degree price discrimination? Explain. e) Some contend that third-degree price discrimination is unfair or that it reduces social welfare. Do you agree with this statement