You own a cafe where you sell two kinds of products (i) coffee (ii) bagels. Each morning, there are two types of consumers who visit the cafe. For simplicity 4 assume the marginal cost of producing a coffee or a bagel is zero.3 Each type A consumer is willing to pay $6 per coffee, and is willing to buy 2 coffees; and is willing to pay $3 per bagel, and buy up to 2 bagels. There are 20 consumers of type A. Each type B consumer is willing to pay $2 per coffee, and will only buy at most one coffee; and is willing to pay $2 per bagel, and buy up to 4 bagels. There are 40 consumers of type B. 1. (2 pts) 3rd-degree price discrimination: Suppose that the cafe can engage in third-degree price discrimination in order to separate A and B. You can charge each consumer a different price for a cup of coffee, as well as a different price for a bagel. What prices should you charge to maximize revenue, and what is your maximum revenue? 2. (3 pts) Uniform pricing: Now suppose that you do not know which consumers are type A