Nick is the only supplier of bobbins in White Stone. There are only three consumers of bobbins in the village and, depending on the price, they can buy up to three bobbins each. The table shows the marginal willingness to pay (MWP) of each of the three consumers for bobbins.

MWP (in Euros)Consumer 1

1st bobbin 0.80

2nd bobbin0.50

3rd bobbin0.20

MWP (in Euros)Consumer 2

1st bobbin 1.00

2nd bobbin 0.90

3rd bobbin 0.20

MWP (in Euros)Consumer 3

1st bobbin 0.95

2nd bobbin 0.70

3rd bobbin 0.55

The marginal and average costof a bobbin is 0.55.

(a)Assume that Nick knows the MWPs and applies perfect (first-degree) pricediscrimination. Determine the number of bobbins that will be sold, the consumers that will purchase them, Nick's profit, the consumer surplus for each consumer, and the total level of welfare generated by the market for bobbins in White Stone.

(b)Assume that the market for bobbins in White Stone is perfectly competitive. Determine again the number of bobbins that will be sold, the consumers that will purchase them, Nick's profit, the consumer surplus for each consumer, and the total level of welfare.