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d) if the monopolist is able to offer a quantity discount in the form of, thr first w units purchased at a price of p1,

d) if the monopolist is able to offer a quantity discount in the form of, "thr first w units purchased at a price of p1, and any additional q2 units purchased past q1 are priced at p2

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Part II: Analysis Question 2 (40 points) Consider a monopolist selling to two types of consumers with inverse demand curves given by p, = 10(4- q,) and p, = 8(4- q,) for the "high" and "low" types, respectively. The firm's technology is characterized by MC = AC = $4. a) Compute the optimal linear 3ra degree prices to charge if the monopolist can identify consumer types. b) If the monopolist can identify consumer types and engage in 2nd degree price discrimination by using a two-part tariff, calculate the optimal pricing scheme. Be sure to include both the entry fee structure and the price per unit in your answer. c) If instead, the monopolist cannot identify consumer types, but still engages in 2nd degree price discrimination by charging everyone the same uniform two-part tariff, compute the profit maximizing pricing structure. Be sure to include both the entry fee structure and the price per unit in your answer. (hint: be sure to consider all cases)

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