Problem 1:Because malls are centrally located while outlets stores are not, demand tends to be different at the two types of retail venues.Suppose that demand for some product at malls is given by P = 100 - Q, so MR = 100-2Q, while demand at outlet stores is given by P = 50 - 0.5Q, while MR = 50 - Q.Suppose that the marginal cost of the product is 5 at both venues. (There are no fixed costs, so TC = 5Q).

1.Find the profit maximizing quantities and prices at the mall and outlet store.Calculate the associated profits.

2.Suppose that one cannot segment the consumers using malls and outlet malls, so that one instead faces a single overall demand curve.Find the overall demand curve (that is consistent with the two segment curves given in the problem).

3.Find the profit maximizing quantity and price when one can set only a single price.How large are profits? How do these compare with the profits with segmentation?