help needes

5) (15 points) Consider two monopolies, A and B. Their products are entirely different. Firm A's actions don't affect Firm B, and vice-versa. The fixed costs for both firms are the same. Both firms sell their product at $80, and each firm sells an average of 300 units/day. Firm A's analysts project that raising the price by 3% would result in daily sales of 282 - a 6% decrease. Firm B's analysts project that a 2% increase in price would result in a 5% decline in sales. Assume the original prices are, in fact, the optimal prices to charge ($80 for each firm). Which firm do you expect to be more profitable, and why? 6) (15 points) You own a firm with some market power. You sell 1 product. You would like to implement perfect price discrimination. Your market research suggests that a large number of people would buy your product at $200. An even larger number of people would buy the product at $50, but not at $200. Your marginal cost per unit is $10. To maximize profit, you decide to set the price at $200, but also buy billboards across your market advertising a weekly sale: the price will be $50 on Mon, Wed and Fri from 12pm to close. a) Is this likely to achieve a goal of perfect price discrimination? Why or why not? b) Can you suggest any better way of executing your optimal pricing strategy? (There is no one specific answer I'm looking for here - feel free to be creative.)