Problem 2. Second degree price discrimination. Suppose the monopoly has a constant marginal cost of 0 and can sell its good to two different groups...

Problem 2. Second degree price discrimination.

Suppose the monopoly has a constant marginal cost of 0 and can sell its good to two different groups of customers. One group of "poor" has demand function P = 1.5 - Q; the other - equally large group of "rich" has demand: P = 2 - Q. The seller cannot tell whether a particular consumer is rich or poor, but she knows that there is equal number of both types.

a.