Question [3]: Consider the partial equilibrium market for some good. Suppose there are two types of consumer. Consumer type A has market demand r4 (p) = 20 0.510. Consumer type B has market demand 3:3 (p) = 30 2p. The rm producing the good in this market is assumed to have zero xed cost and constant marginal cost of c = 10 per unit. 1. What is market demand (assume equal numbers of consumer types)? 2. If the rm has a monopoly, what is the equilibrium price and allocation? 3. Suppose the rm can discriminate between consumer types (third degree price discrim ination): What is the equilibrium now? 4. Can we draw a welfare comparison between 2) and 3) based on the Pareto criterion? 5. If we assume that Area Variation/ Consumer Surplus is a good measure of consumer welfare: compare 2) and 3) for the three economic actors in this example