a) The online game Econdork can be downloaded by paying a fee on a site where games are downloaded, ppstore. Econdork determines the price of its game but has to follow ilppstore's policy that the price should be the same in all countries. Briefly discuss the welfare effects of the policy that price is the same everywhere and compare to a situation where Econdork could set different prices in different countries. Discuss the likely effect on a lower income country like Thailand and on a higher income country like Germany. b} Econdork now thinks of introducing a version of the game that can be downloaded for free where players see advertising and where players can then purchase ingame products online. Can such a policy be understood as a form of price discrimination? If so, explain in what way? 0) A'ppstore originally sold music and charged a price for each song sold (regular monopoly pricing). Assume for simplicity that there was only one consumer and that her demand for songs was given by p=20-Q where p is price in kr and Q is number of songs purchased. The marginal cost for lppstore equaled 2 and fixed costs were 0. What was the profit maximizing quantity for A'ppstore under these assumptions? How large was A'ppstore's profit from sales of music? d} In the music market lepstore eventually closed and were replaced by Spttifaj that has another pricing model. Spttifaj charge a fixed fee and then customers can listen to songs as they want with no additional cost. How large will this fixed fee be if demand is as in c) and if Spttifaj has the same cost structure as Appstore (marginal cost:2 and fixed cost:0). How high is profit? Intuitively, why do profits differ between c) and d)