Customer Reservation Price TR MR TR MR A 1 $26 2 $24 3 $22 4 $20 $18 6 $16 $14 H 8 $12 2. Suppose that a monopolistic bakery faces the following market demand. Each customer would like to purchase just one cake per day. The marginal cost of production is a constant $13 per cake, and the fixed cost of production is $5 per day (MC = $13, FC = $5). a. What is the socially optimal quantity? b. Find the profit-maximizing price and quantity, if the firm must charge the same price to all consumers, and calculate the firm's monopoly profits. c. Now suppose consumers A, B, and C are non-students and consumers D, E, F, G, and H are students. If the firm can charge a different price to each group, what prices will maximize profits? Calculate the firm's monopoly profits if they can price discriminate, charging a different price for students and non-students. d. Now suppose that the firm is able to perfectly price discriminate. How many cakes will it sell? How much profit will it earn? e. Comparing the outcomes from parts (b). (c). and (d) which market will yield the highest profit? Which will yield the lowest profit? f. Comparing the outcomes from parts (b). (c). and (d) which market will yield the highest total surplus? Which will yield the lowest total surplus