"Brewers big and small vie for piece of growing cider market" (Sagan, A. Vancouver Sun Newspaper, Thursday, May 12, 2016, p. D3). "This year's third annual craft cider week in Ontario will include the grand opening of a bar that pays homage to the fruit-based alcoholic beverage by offering more than 80 different types of cider." Suppose that your Craft Cider firm has distinguished two identifiable consumer groups - one that LOVES Craft Cider and one that enjoys Craft Cider buy enjoys other beverages equally as much. Through research, you have been able to determine the Demand Curve associated with each group as well as the Marginal Revenue curve associated with each group. Your firm's Marginal Cost, MC is the same for both groups: MC = $4.00 Craft Cider Lovers Demand Curve: PL = $10.50 - 0.0015[QL] Marginal Revenue curve; PL = $10.50 - 0.0030[QL] Craft Cider Meh'ers Demand Curve: PM = $8.50 - 0.0030[QM] Marginal Revenue Curve,

MRM: PM = $8.50 - 0.0060[QM]

(i) (1) Determine both the QUANTITY and PRICE the firm would offer to EACH of the groups identified above, AND; (2) CAREFULLY DESCRIBE the two conditions required in order to be able to effectively Price Discriminate AND WHY each condition is necessary?