a. What are the reasons for the existence of monopoly in a particular industry? Provide an example for each. (7) b. Discuss and provide examples of different price discrimination that exist in the Somalia market. In your opinion, which price discrimination is acceptable in the market? Justify your answer. (8) [Total: 15 marks] You have been presented with the following data and asked to fit statistical demand functions: SALES REGION 1234567899 SALES (Y) (1000 LITERS) 160 PROMOTION EXPENSES (A) ($'000) 150 SELLING PRICE (P) (S/LITER) 15.00 220 160 13.50 140 50 16.50 190 190 14.50 130 90 17.00 160 60 16.00 200 140 13.00 150 110 18.00 210 200 12.00 190 100 15.50 10 You are required to do the following: a. Develop a simple regression model with paint sales (Y) as the dependent variable and selling price (P) as the independent variable. b. Show the estimated regression equation. c. Give an economic interpretation of the estimated intercept (a) and slope (b) coefficient. d. Calculate the coefficient of determination. (8) e. Suppose one is interested in developing a multiple regression model with paint sales (Y) as the dependent variable and promotional expenditures (A) and selling price (P) as the independent variables. i. Show the estimated regression equation. ii. Give an economic interpretation of the estimated slope coefficients. iii. Determine the coefficient of determination.