Case Study '04 - Pricing Coins Scenario: This monopolist has located a sunken treasure ship. It could spend $1111I to bring a chest of gold coins the surface, and sell the coins. Thus, the ferwould have: . TTC = $110 - MC = {1 This monopolist sells to \"type 1\" and \"type 2\" customers that have different observable customer characteristics. . The equation of demand 1 is Q = 6 {ILSP - The equation of demand 2 is Q = 14 {1.5P Steps to complete Case Study #4 1. Dpen the data le for Case 4. The worksheet labeled Demand_1 provides information about the Demand from Type 1 customers. Demand_2 provides information about the Demand from Type 2 customers. 2. (Mpts) First, assume that the rm can treat each demand separately. This means iat they can employ thirddegree price discrimination. If they sell to one group, that group cannot resell to the other group. In this case, we can find the prot- maximising Q and P for each type and then add up the profit from both to obtain our overall prot. a. {1.5pts) Regardless of how demand is treated, the rm faces the same cost structure. So, nd the following cost information for this rm: i. Total co st {TC} ii. Average variable cost (AVC) iii. Average total cost {ATC} b. 1n the data le for case 4, start with the Demand 1 worksheet. Find the profit maximizing P 8: Q and prot for Demand 1: i. (2pts) Find the equation for marginal revenue {MR}. Show all work. ii. {2.5pts} Calculate the profitmaidmizing level of output for this rm and nd the price they will charge