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Monopoly and price discrimination Suppose that a monopoly can price discriminate between two markets segments: market seg- ment 1, where the demand curve is given by Q1 = 10 P1, and market segment 2, where the demand curve is Q2 = 12 P2. Assume that arbitrage is impossible and the monopolist practices group pricing Assume that the monopoly produces each unit at a cost of c = 2. (Remember the monopolists may choose to price such that they do not sell to all consumers or all markets. Be sure to consider all possible cases in the following questions.) 1. Calculate the prot maximizing output level that the monopoly sells in each market. Calculate the price charged in each market and the monopoly's prot level. 2. Suppose that consumers in markets segments 1 and 2 are free to trade the good costlessly between the markets. Thus, the monopoly can no longer price discriminate and has to charge a uniform price denoted by P = P1 = P2. Find the prot-maximizing value of P. Are consumers better off in this situation? If so, how? If not, why not