Question 2 Megabus sells bus tickets on the Philadelphia-Washington route. It offers two classes of service, rst and second class, which differ in the quality of the amenities provided. Megabus knows that their potential passengers belong to one of two segments: business and 1He would rather the King just send the secret police (war to the oices of The We and thrash the paper's sta. In his View the inhabitants of Zenda should be grateful that they now live in homes and drink Brawndo instead of thatched huts and subsisting on mountain goats piss. 2Georgy is fond of saying \"I 1was middle of the road once, but got run over in both directions." Page 2 tourist. Homer, it cannot tell whether a giVen customer belongs to one group or the other. Each customer is interested in buying at most one ticket. All customer's in the same segment share the same RPs for the different types of tickets. These are displayed below as is the size of each segment. The marginal cost of serving a ticketed passenger of either class is zero. Second Class Segment SiZe Business Tourist EE_ Each customer 1will choose the ticket that gives her the highest surplus. 1. If Megabus offers only First Class tickets, what price should it charge in order to maximise revenue? 2. Should Megabus sell tickets for both classes of service? If so, at what prices? 3. For this part suppose that Megabus has a competitor on the same route, Peter Pan. They only offer one class of service, which business customers value at $15 and tourists value at 313. Peter Pan sells its tickets at a price of $10. Assuming that Peter Pan will not change its ticket price, what prices should Megabus set to maximize its prots? Assume that each customer will choose Megabus if the surplua they get is the same as the one they get from buying a Peter Pan ticket