PLEASE HELP OUT WITH THESE TWO QUESTIONS !!!! MUCH APPRECIATED! ECO380 u of t summer school

A monopolist airliner hires you as a manager. They have business travellers and tourists as two types of customers, whose inverse demands are P = 100 :r and P = 80 a: respectively. Your boss is not very happy with the idea of reducing the price of businessrclass tickets, and is thinking about reducing the quality of the economyclass ticket instead. For simplicity, assume that there is no cost to provide 5:. Part a. (1 mark) Suppose that the economy class ticket can be reduced to have a quality of a: = 40. Find out the lump-sum price of economy class ticket PE that can extract the maximum consumer surplus from tourists. Part b. (1 mark) Given PE, nd out the maximum price that of the businessclass ticket P3 that can be charged without making the business travellers going for the economyclass tickets. Part c. (2 marks) Suppose that the prot of the monopoly is P3 + PE. By comparing the prots from reducing businessclass ticket price versus reducing economyclass quality to 2: = 40, what would you recommend to your monopolist boss?| A monopolist sells a good in two markets, and he is only capable of doing simple per-unit pricing in each market. The inverse demand curve in the two markets are p1 = 100 - q1, p2 = 100 - 492 respectively. The firm's total cost is (q1 + 92)2. Part a. (1 mark) Suppose that the monopolist can charge different prices in each market, what is the objective function of the monopolist? Part b. (1 mark) What are the profit-maximizing quantities q1, 92 in the two markets? Part c. (2 marks) What are the profit-maximizing prices p1, p2 in the two markets? Part d. (2 marks) Suppose that the monopolist have to charge the same price in each market. In this case, you need to find the total demand first. What is it? (hint: sum up the individual market demands q1, 92 to get Q for each possible price P)