(a) Calculate the profit-maximizing quantity and price, combined profit, combined consumer surplus, and combined deadweight loss from serving each buyer if this monopolist can only practice third-degree price discrimination.

(b) Repeat part (a) if this monopolist becomes the most powerful form of monopoly in the market. Explain the changes in your results.

(c) Use your results from part (a) as the starting point to design the initial multipart pricing scheme. Demonstrate your scheme yields better combined profit for the monopolist but smaller combined consumer surplus for the buyers. Explain how you may improve upon the initial multipart pricing scheme to raise combined profit for the monopolist at the expense of combined consumer surplus for the buyers.

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17. Suppose there are two buyers in the market served by a monopolist. The demand equation (P is price and Q is quantity) for the first buyer P1 = 80 - 0.401 and the demand equation for the second buyer P2 = 60 -0.0502. For simplicity, assume AC = MC = 0 for this monopolist. You may use graphs to visualize this problem, but they will not be graded. You must show step-by-step calculation with explanation according to lecture discussion or a zero will be assigned. Simply describing how to solve this problem will not earn you any mark. 17. Suppose there are two buyers in the market served by a monopolist. The demand equation (P is price and Q is quantity) for the first buyer P1 = 80 - 0.401 and the demand equation for the second buyer P2 = 60 -0.0502. For simplicity, assume AC = MC = 0 for this monopolist. You may use graphs to visualize this problem, but they will not be graded. You must show step-by-step calculation with explanation according to lecture discussion or a zero will be assigned. Simply describing how to solve this problem will not earn you any mark.