S Senior Citizens D O N m 10 charging the price that maximizes profit in each of the two submarkets. Marginal cost anu average tutar S a. Complete the table by calculating the total and marginal revenue for stockbroker demand. and then the total and marginal revenue for Stockbrokers cost are equal and constant at $2 per lunch. N m in senior citizen demand. (2 marks) m O PricePrice discrimination can be profitable for a monopoly when different consumer groups have different willingness to pay for the product. The smart price-discriminating monopolist treats the groups as different markets. The rule for maximum profits for a price-discriminating monopoly is to find the quantity of output where marginal revenue in each market = marginal cost. Then, in each market, charge the maximum price the consumer group is willing to pay for that quantity (on each demand curve). Barney's Bistro has two kinds of customers for lunch: stockbrokers and retired senior citizens. The demand for lunches for the two groups are in the table below. Barney decides to price discriminate between the groups by treating each demand separately and charging the price that maximizes profit in each of the two submarkets. Marginal cost and average total cost are equal and constant at $2 per lunch. Stockbrokers Senior Citizens Price S S O $7 O O m Nd. What is Barney's total economic profit? (2 marks) e. Show that the total economic profit in part d is the maximum by comparing it with total economic profit if instead Barney served 1 more lunch each to stockbrokers and senior citizens, or (2 marks) ii. I less lunch each to stockbrokers and senior citizens. (2 marks)a. Complete the table by calculating the total and marginal revenue for stockbroker demand, and then the total and marginal revenue for senior citizen demand. (2 marks) Page 3 of 4 b. What is the profit maximizing quantity and price for stockbrokers? Explain. (2 marks) c. What is the profit maximizing quantity and price for senior citizens? Explain. (2 marks)