and P2 - 1) Suppose there are two consumers. Consumer 1 has the demand func- tion y(p) 20 - P1/2, the second consumer has the demand function y(p2) = 15 - p2/2. Inverse demands are then given by p = 40 2y 30 2y2 The monopolist wants to charge different prices for each consumer. Suppose that marginal cost of the monopolist is 10. Marginal revenue from consumer 1 is then MR 40 4y and from consumer 2, MR2 = 30 - 4y2 a) Calculate the monopolists price for each consumer. b) Suppose the monopolist cannot differentiate between each consumer and much charge the common price p. What would p and y be? In this case the inverse demand is given by p = 70-2y and marginal revenue is MR = 70- 4y c). Calculate the difference in profits between the two cases. =