As a third degree price discriminator. (1) What is the quantity the monopolist will produce (2) what is the quantity supplied to class 1? Class 2?(3) what is the price for class 1? Class2(4)what would the price be if a single price was set for both classes?(5) what is the profit the monopolist would make if a single price was set for both classes? Would the profit be smaller or larger

Consider a market served by a single producer. The total cost function for this monopolist is TC - 0.502 The monopolist's marginal cost is MC=Q. Suppose there are two classes of buyers in this market. The demand functions for the two classes are. Class 1: P = 10 - Q/2 (or Q = 20 -2P). Class 2: P = 14 -2Q (or Q =7-P/2) T When the monopolist CANNOT distinguish between the two classes, we can graph the market demand curve and the monopolist's MR as shown in the graphs below P Class | P Class Il P A MC 14 10 CS I 7 CS II 8.4 DI D, MR 3.2 20 Q 2.8 7 6 13.5 27 Q Suppose the monopolist acts as a third degree price discriminator. By the following questions, we are finding the price and quantity pairs that a price discriminating monopolist would set for the two classes. With a third degree price discrimination, we can graph the market demand curve and the monopolist's MR as shown in the graphs below. Class | Class Il MC 14 CS I 7 CS II 10 10 8 MR D1 MR D MR 4 10 20 Q 2 Q 13.5 27 (1) What is the quantity the monopolist will produce? (2) What is the quantity supplied to Class 1? What is the quantity supplied to Class2? (3) What is the price for Class 1? What is the price for Class2? (4) What is the monopolistic price if a single price were set for both classes