Problem 2. Price Discrimination. (40 points) Consider a monopolistic rm that sells drugs in two markets, Europe and US. In Europe, inverse demand is given by 13(933) = 8 2mg, whereas in the US it is given by p(myg) = 10 mug. The cost function of the monopolist is c (2213 + mug) = 22E + mug, that is, the marginal cost of production is constant and equal to 1. 1. Which market has a higher willingness to pay (that is, consumers are Willing to pay more for a given quantity)? (5 points)