Consider a monopoly market.Initially, the firm sets one price to all buyers, because the firm does not have detailed information on each individual buyer.The straight-line market demand curve D₀ and the firm's average cost curve AC₀ are shown in the graph below. The firm has constant average cost of production equal to $10.Let's call the initial profit-maximizing price P₀ and the initial profit-maximizing quantity Q₀.

Segment 2 has people who are willing to pay moderate prices.As indicated in the graph above, the range of prices for Segment 2 is from a price P_L (that is somewhat below P₀) to a price P_H (that is somewhat above P₀).

Recall that Segment 2 is the "middle" portion of the overall market demand curve, showing buyers who are willing to pay between P_L and P_H.(Recall also that the initial profit-maximizing price P₀ is between P_L and P_H.)

Given this information, you are asked to determine which of the following is/are possible:

(i)The profit-maximizing price P₂ for Segment 2 is greater than the initial profit-maximizing price P₀ for the entire market (no segmentation).

(ii)The profit-maximizing price P₂ for Segment 2 is equal to the initial profit-maximizing price P₀ for the entire market (no segmentation).

(iii) The profit-maximizing price P₂ for Segment 2 is less than the initial profit-maximizing price P₀ for the entire market (no segmentation).

Explain which of these three is/are possible.Your answer (and the graph) should include (but may not be limited to) a clear explanation of the profit-maximizing price P₂ for Segment 2.