Question 2. (Third degree price discrimination ) Feed-forward Drug Corporation sells a major drug in Europe and in the United States. Because of legal restrictions, the drug cannot be bought in one country and sold in another. The demand curve for the drug in Europe is Pg = 12 -Qg . where Pg is price in $ per pound in Europe and Qg is the amount in millions of pounds sold there. The demand curve for the drug in US is Pu = 30 - 2Qu . where Py is price in $ per pound in the US and Qy is the amount in millions of pounds sold there. The total cost in millions of dollars of producing the drug for sale worldwide is TC = 6+ 2(QE + Qu). a) Derive the firm's total profit function including both Europe and the US in it as a function of OF and Qu . [4 marks] bj Calculate the optimal number of drugs to sell in Europe as well as in the US. [6 marks] c) Calculate the optimal prices to charge in Europe as well as in the US. [4 marks] d) Calculate the firm's total profit under this price discrimination scheme. [3 marks]