third degree price discrimination

Firm A has no costs of production and sells its products to just two buyers. The buyers (1 and 2) have the following demand functions:

P1 = 90 -10q₁

P2 = 60 - 5q₂

(a) Assuming that the rm can engage in third degree price discrimination, nd the profit maximizing prices. What is the rm's prot?

(b) Now, suppose that the monopolist can engage in multi-part pricing. Find a two part price schedule that generates more prot than the rm gets under third degree price discrimination. How much additional profit does it earn?

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