QUESTION 3| (CL02) (20 MARKS) 0 ABC Export-Import Shipping Company was established in 2007 and the company offers a standard freight regardless of types of goods and made good profits during initial 10 years; however, the prots declined due to competition from other shipping companies. In 2020, the Department of Business Development came out with a strategy to impose two classes of freights to manufactured and semi-manufactured goods. Along the line, the Chief Economist of the company informed the Business Development team that the price elasticity is 3 for manufactured goods and 5 for semi-manufactured goods. Hence, the top management is planning to impose two classes of freights. (a) Is it possible for the company to charge two different prices with respect to manufactured and semi-manufactured goods? Explain your answers. (3 Marks) (b) Given the cost function is TC = 20 + 4Q; the demand for manufactured goods is P1 = 100 2Q1 and the demand for semi-manufactured goods is P2 = 80 Q2. Will it be protable for the company to impose two classes of freights in both markets? Show the calculations. (10 marks) (c) Will it be protable for the company to maintain a standard freight for both markets? Show the calculations. ('7 marks)