There are two types of consumers: one half of consumers are type 1 (low type) and the other half = 8 – P, while type 2's demand is given by P. Consider a monopolist selling its product to these...

Extracted text: There are two types of consumers: one half of consumers are type 1 (low type) and the other half = 8 – P, while type 2's demand is given by P. Consider a monopolist selling its product to these consumers. Assume that the marginal are type 2 (high type). Type l's demand curve is q1 - q2 = 12 – cost is equal to zero. Now suppose that the firm can separate type 1 from type 2. That is, market segmentation is possible, and so the firm charges P for type 1, while charging P2 for type 2. (1) What should be the profit-maximizing P for type 1 consumers? (2) What should be the profit-maximizing P2 for type 2 consumers? (3) What is the social surplus under P and P2 computed in 1.2.(1)-(2)?