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Question

Internet service in the local market is supplied by Laura's Internet Service.  Laura has two types of consumers.  The first type of customers is local businesses, and their demand for internet service is   = 8,500 - 100P  P = 85 - 0.01 .  The second type is residential customers, and their demand is   = 12,500 - 500P  P = 25 -  .  Laura's marginal cost function is
MC (QB + QR) =   +  .  If Laura practices third-degree price discrimination and charges business customers $35 and residential customers $15, is Laura maximizing profits?

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