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Question 1 (12 marks total) A Monopolist is facing the market demand function Qa = 1, 200-(1/4)p for Type A consumers and Q+ =900- (1/3)p for Type B consumers, where Q. and Q: is total quantity demanded from Type A and Type B consumers respectively, when the monopolist charges a constant price of p dollars for every unit of output sold. The monopolist has the cost function o(y) - 10y, which is the minimum level of costs for producing y units of output. a) Find the Pareto efficient output for Type A consumers. Denote this Q. (1 mark) Find the Pareto efficient output for Type B consumers. Denote this Qu. (1 mark) b) Find the maximum amount of money that Type A consumers are willing to pay for Q% units. (1 mark) Find the maximum amount of money that Type A consumers are willing to pay for Q; units. (1 mark) c) Find the maximum amount of money that Type B consumers are willing to pay for's units. (1 mark). Find the maximum amount of money that Type B consumers are willing to pay for Q% units. (1 mark) d) Suppose the monopolist is practicing First-Degree price discrimination. How much output are Type A consumers buying, and how much money are they paying to the monopolist? Denote this combination of quantity and money as (Q%DED, myDPD). (1 mark) How much output are Type B consumers buying, and how much money are they paying to the monopolist? Denote this combination of quantity and money as (QEDPD, mEDPD). (1 mark) What are the total profits of the monopolist? (1 mark) e) Suppose that the monopolist cannot observe the type of each consumer. She offers the following menu of options and leaves it up to the consumers to select which option to buy: . Option 1: (QA OFDPD .FDPD) FDPD MEDPD Which option will type A consumers buy, and which option will type B consumers buy? Explain your answers (1 mark) Find consumers' surplus for each type of consumer. (1 mark) Find the monopolist's total profits (1 mark)