Question 3 (70 points; 10 points each): Consider an imperfectly competitive service provider, Muscat Automotive Repair Services (MARS), whose total cost of production is C = 300 + 0.165Q2. Also, MARS faces two different market segments, A and B, whose demands can be linearly expressed as QA = 240 -PA and Qs = 120 - 0.5P8. (Hint: the marginal cost is the slope of the total cost function). 4. Compare first second and third-degree price discrimination in terms of (1) potential firm profitability and (2) allocative efficiency. 5. Why is market segmentation easier to implement in the market for a tourism service, compared to the market for fresh fish in Oman? 6. Name and explain two fundamental assumptions underlying the Cournot model