Suppose the monopolist in the previous problem can now price discriminate between type A and type B consumers using athird degree price discrimination scheme (group pricing)

a- Suppose that this monopolist has a constant marginal cost of production ofMC(q) = 50. Solve for the equilibrium price charged to each type of consumer and the equilibrium quantity sold to each type of consumer. Calculate total monopolist profits. How does this compare to the profit that the monopoly earned when it could not price discriminate? Is price discrimination welfare improving in this case?

b-Suppose that this monopolist has an increasing marginal cost of production ofMC(q) = 20 +Q. Solve for2

the equilibrium price charged to each type of consumer and the equilibrium quantity sold to each type of consumer. Calculate total monopolist profits.