Eric works for a sofa manufacturer that has monopolized the market for sofas in the US and Canada. The company has estimated its demand curve to be Q = 16,000 - 4P or P = 4,000 - 0.25Q Suppose this firm can manufacture sofas at a constant marginal cost of $500 per sofa (MC=500) and that there are no fixed costs. a. What is the expression for the marginal revenue function? b. Without any calculations, what part of the demand curve (elastic, unit elastic, inelastic) does the firm produce? Why? c. How many sofas will the firm produce? What price will they charge for each sofa? Suppose that Eric does some research and discovers that the firm's demand can be separated into two groups of customers, US customers and Canadian customers. The demand of US customers is Q = 9,000 - 2P or P = 4,500 - 0.5Q The demand of Canadian customers is Q = 7,000 - 2P or P = 3,500 - 0.5Q d. If Eric's company decides to engage in multi-market (third degree) price discrimination, how many sofas will they sell in the US and at what price? How many sofas will they sell in Canada and at what price? e. Given the price you calculated in part d, is demand more or less elastic in Canada? (no calculations required)