There are 2 groups with different demands in a market, as follows: ₁=40₁ and ₂ =1002₂.

a. Give the inverse demand curves and marginal revenue in each of these groups. b. If marginal cost is flat at $10, calculate the profit-maximizing quantities and prices associated with this market place. Are the prices for each group different? Comment on the outcomes. c. Calculate the producer surplus associated with the outcomes generated in part b. d. Now calculate the equilibrium price and quantity if the firm charges one price across all consumers. What is the producer surplus associated with this outcome and how does it differ to that calculated in part c? e. Would overall welfare increase or decrease if the firm is not allowed to price discriminate and decides to only serve the more inelastic groups who demand their product? This is a general question, you don't need to use the example above.