Suppose the demand curves in two different markets are given by:  Q_1=24 - P_1 and Q_2=24 - 2P_2 

and that a monopoly can serve both of these markets at a constant marginal cost of $6.

• a) If the monopoly can't separate both markets, then what would be the equilibrium price and quantity? Explain.
• b) Does the firm make a profit? If yes, how much is it? Explain.
• c) If the monopoly can separate both markets, then what type of price discrimination would the firm use? Explain.
• d) If the monopoly can separate both markets, then what would be the equilibrium price and quantity? Explain.
• e) Does the firm make a profit with price discrimination? If yes, how much is it? Explain.
• f) Should the firm practice price discrimination? Why/Why not?