An additional cost of $50 per unit is incurred by a firm when selling to its non-EU customers compared to its EU customers.

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 20 P + Q = 5000 and the total cost function is given by TC = 40 Q + 2000 where Q is total demand. Find the maximum profit with price discrimination.


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