The gourmet boutique Choca-Shocka-Shop sells chocolate, for simplicity thought of as a continuous good. Also, for simplicity, assume that production is costless, i.e. MC=0. The shop faces two potential customers. The slightly richer Mrs. A whose demand function is given byDA?(p)=max(20?p,0) and the slightly less rich Mrs. B with DB?(p)=max(16?p,0). Determine the following:

• Determine the quantity sold to A and B
• Price pr. unit chocolate, or amount paid for a "package" for A and B
• Consumer surplus for A and B
• Profits for the chocolate seller
• Deadweight loss

For the different cases of competition mentioned below:

a) The seller acts as if there is perfect competition

b) The seller can, as a monopolist, set one common unit price for both customers

c) The seller can, as a monopolist, set different unit prices for each customer, i.e. third-degree price discrimination

d) The seller is able to follow a second-order price discrimination policy e) The chocolate seller succeeds with first-order (perfect) price discrimination

Take Home Assignment 9 The gourmet boutique Choca-ShockarShop sells chocolate, for simplicity thought of as a continuous good. Also, for simplicity, assume that production is cost- less, i.e. M C = 0. The shop faces two potential customers. The slightly richer Mrs. A whose demand function is given by DA(p) = max{20 11,0}, and the slightly less rich Mrs. B with D3(p) = max{16 p, 0}. Determine the following: 0 Determine the quantityr sold to A and B 0 Price pr. unit chocolate, or amount paid for a \"package\" for A and B 0 Consumer surplus for A and B o Prots for the chocolate seller University of Copenhagen Page 2 of 3 Problem Set 9 Microeconomics II Spring 2022 o Deadweight low For the different cases of competition mentioned below: (a) The seller acts as if there is perfect competition (b) The seller can, as a monopolist, set one common unit price for both customers (c) The seller can, as a monopolist, set different unit prices for each cus- tomer, i.e. third-degree price discrimination (d) The seller is able to follow a second-order price discrimination policy (e) The chocolate seller succeeds with rst-order (perfect) price discrimina- tion