You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country

You are the manager of a monopoly that sells a product to two groups of consumers in
different parts of the country. Analysts at your firm have determined that group 1's elasticity of
demand is -3, while group 2's is -5. Your marginal cost of producing the product is $40. (13)
a. Determine your optimal markups and prices under third-degree price discrimination. (6)
b. Identify the conditions under which third-degree price discrimination enhances profits. (4)
c. If your marginal cost of producing the product increased to $60, how would this change your
optimal markup and pricing decisions under third-degree price discrimination. (3)