Ocean Paradise Grille Suppose you own a super fancy restaurant in Wailea, Hawaii, called the Ocean Paradise Grille. You suspect that the demand for your dinners is different for senior citizens compared to everyone else, and so you are considering price discriminating by offering a senior citizen discount. You estimate that for the two groups the average daily demand for your dinners is as follows: Group 1 - non-senior citizens: Q = 330 - 2P₁ Group 2 - senior citizens: Q = 510-4P₂ Where QP is the quantity demanded for Group 1 when it faces price P₁ and Qis the quantity demanded by Group 2 when it faces price P₂. This implies that the marginal revenue for each group is: MR1 = 165 – QP MR₂ = 127.5 - Q You have the following total and marginal costs: Total Cost = 1000 + Q² MC = MC =2Q Where is your total quantity produced (i.e. Q = Q₁ + Q₂). Notice here, that marginal cost is the same whether you're producing in Market 1 or in Market 2, and that marginal cost is increasing in Q - which means that when you produce more in Market 1, your cost of producing an additional unit in market 2 also increases (and vice versa). Finally, assume that the two markets are distinct, so arbitrage is not possible. 14 1 point 8) Ocean Paradise Grille (Part c) How much profit would you make if you price discriminated? (In your answer, include two decimal places, rounding if necessary, and don't include any commas if applicable) profit = $3668.75 8) Ocean Paradise Grille (Part e) What is the profit in this discrimination-free market? Keeping in mind that these are average daily demands, and assuming that you're open 365 days a year, how much profit per year do you lose by not discriminating (compare your answer here with the profit calculated in part c)?