Crazy Harry, a monopolist, has a total cost curve given by TC = 10Q + 30. He sets two prices for his product, a regular price, P_H, and a discount price, P_L. Everyone is eligible to purchase the product at P_H. To be eligible to buy at P_L, it is necessary to present a copy of the latest Crazy Harry ad to the salesclerk. Suppose the only buyers who present the ad are those who would not have been willing to buy the product at P_H. a. If Crazy Harry's demand curve is given by P = 40 10Q, what are the profit-maximizing values of P_H and P_L? P_H: $ P_L: $ b. How much economic profit does Harry make? $ c. How much profit would he have made if he had been forced to charge the same price to all buyers?

$ d. Are buyers better or worse off as a result of Harry's being able to charge two prices? Better offWorse off