Question 3 (15 total marks) The Price Discriminating Monopolist Suppose the profit maximizing firm sells the same good in two individual markets that it is able to keep separate. Since the price elasticity of demand is different in each market, the firm recognizes that rather than charge all customers the same price, it can increase profits by charging different prices in each of the two markets. The demand equations for each market are shown below: Demand Market 1 Market 2 P=252Q P=15Q The firm's Total Cost Function is: TC = 5 Q a) What is the optimal output in Market 1? (3 marks) b) What price will be charged in Market 1? (2 marks) d) What price will be charged in Market 2? (2 marks) e) What is the firm's total profit? (3 marks) f) Illustrate your answer. (2 marks) Market 1 Market 2 Total Market