Problem 2: Monopoly and Price Discrimination [13 points] Suppose here that a monopolist has a constant Marginal Cost of $10 per unit. The monopolist has no fixed costs. This monopolist is also the monopolist over two separate groups of consumers {i] Young Consumers and iii} Old Consumers. The demand for Young Consumers is given by: Qroung = 1m] _ P And the demand for Old Consumers is given by: Quid = 50 ' 0-5? Suppose to start that this monopolist can price discriminate between these markets. The monopolist charges a dierent price for Young and Did consumers, based upon their age. which it verifies by looking at the customers driver's license. 5} What type of price discrimination is this? [1 point] 6} What price does the monopolist charge Young Consumers? What quantity does the monopolist sell to Young Consumers and how much prots does the monopolist make? Show your work. [2 points] Ir'} What price does the monopolist charge Old Consumers? What quantity does the monopolist sell to Old Consumers and how much prots does the monopolist make? Show your work. [2 points] Suppose now that the local government bans price discrimination, and so the monopolist must treat both consumers as being within the same market. 8} What is the new market demand curve that the monopolist faces? [3 points] 9} Write out the monopolist's new Marginal Revenue Curve. [3 points] llWhat price does the monopolist now charge in this general market? What quantity do theyI sell and how much profits do they make? [2 points]