Consider a monopolist (club owner) serving two groups of consumers with demand for beer qy = 10 - p for young and qo =20 - p for old. The marginal cost of the beer is equal to 2.

a. Suppose the monopolist can identify who is young and who is old. Calculate the price of beer and the fixed fee that extracts all the rents from the consumer. If there are 100 young and 100 old consumers, calculate the total profits.

b. Now suppose the monopolist cannot observe who is young and who is old. So he proposes two separate two-part tariffs to its customers. Plan 1 offers an entrance fee 2 and a beer is priced at 8. Plan 2 offers an entrance fee of 66 and a beer is priced at 2. Which types of consumers prefer to buy which type of plan? Calculate the total profits.