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This my question for Econ Buttyl a famous rubbermaker for table tennis rackets. identies two different markets: the Chinese market with demand qc = 13

This my question for Econ

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Buttyl a famous rubbermaker for table tennis rackets. identies two different markets: the Chinese market with demand qc = 13 p,: and the French marketI where it is more popularI with demand gffp] = '22 p;. The total cost of producing one rubber sheetI regardless of the color and including the foamI is CH] = ng where 9' = 9.: +91\" [a] Suppose consumers cannot buj.r the rubber in one place and resell it to the other placeI so that Buttj.r can price discriminate. 1|What are the optimal quantities? Prices? How much prots is Buttj.r earning? [b] Suppose Buttj.r can't price discriminate anymore. 1'What is the optimal price and quantity.r given that both types of consumers purchase a positive quantity? How much prots is Buttj.r earning? How much is each group consuming? The monopolist RippOff-TV holds a monopoly in the local market for cable television services, which consists of 100 residential customers (households). If RippOff-TV offers q channels to households on a monthly basis, the price it can charge per channel is p = 8 - ag from each household. The marginal cost of providing a channel is zero. [a) Calculate the profit-maximizing linear price and the number of channels offered. Is this outcome Pareto efficient ? (b) A clever manager at RippOff-TV suggests to switch to two-part tariff pricing. Determine the profit-maximizing monthly fixed fee F and the optimal per-channel price p. [c ) Comparing your answers in (a) and (b), conclude that profits increase but customers are worse- off under the two-part tariff. Give a brief intuition. Carefully argue whether or not the outcome in bj is Pareto efficient

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