(Solved): 4. Comcast, the local cable Internet monopoly face two types of customers: em ...

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4. Comcast, the local cable Internet monopoly face two types of customers: emailers (E) and gamers (G), whose demand for data are $$y^E=50?\frac{p^E}{2}$$ and $$y^G=100?p^G$$, respectively, 2 where the $$y$$ 's are the quantities of data and $$p$$ 's the prices, to the two types respectively. Suppose the market has 10 customers of each type. Assume that Comcast's marginal cost of supplying data is 0 . (a) (2) Suppose Comcast is not allowed to price discriminate. How much is the price of data? (b) (2) How much data will each type of customer buy at the above price? (c) (2) Suppose Comcast, through Internet cookies, is able to identify each customer's type. What take-it-or-leave-it plan (combination of data quantity and flat fee) will Comcast offer each type of customer? (d) (2) Suppose Comcast cannot identify the type of the customer but knows that the two types exist. Suppose it offers a menu of two plans. One of the plans in the menu is the take-it-or-leave-it plan for emailers you found above. What other plan should it offer to maximize its surplus? (e) (2) How much surplus do each type of customer get with the menu offered above?