An additional cost of $50 per unit is incurred by a firm when selling to its non- EU customers compared to its EU customers. The demand function is the same in both markets and is given by 20P + Q = 5000 and the total cost function is given by TC = 40Q + 2000, Where Q is total demand.
Find the maximum profit with price discrimination.
A)$107,500
B)$476,500
C)$545,000
D)$254,000
E)$346,500

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The Answer of An additional cost of $50 per unit is incurred by a firm when selling to its non- EU customers compared to its EU customers. The demand function is the same in both markets and is given by 20P + Q = 5000 and the total cost function is given by TC = 40Q + 2000, Where Q is total demand.
Find the maximum profit with price discrimination.
A)$107,500
B)$476,500
C)$545,000
D)$254,000
E)$346,500

An Additional Cost of $50 Per Unit Is Incurred by a Firm