You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1's elasticity of demand is -3, while group 2's is -5. Your marginal cost of producing the product is $40. (13) a. Determine your optimal markups and prices under third-degree price discrimination. (6) b. Identify the conditions under which third-degree price discrimination enhances profits. (4) c. If your marginal cost of producing the product increased to $60, how would this change your optimal markup and pricing decisions under third-degree price discrimination. (3)