Question: A monopoly has the following total cost function TC = 1 0 Q and faces the following demand function P = 1 0 0 -

A monopoly has the following total cost function TC=10Qand faces the following demand function P=100-Q. Suppose that monopoly decides to practice 2nd degree price discrimination, as follows: it charges $80 for the first 20 units of output, $60 for the next 20units and $40 for the next 20 units.
What is deadweight loss with 2nd degree price discrimination?
If monopoly practices 3rd degree price discrimination, how much profit it makes from market A?

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