Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA=120-2P. The second type of consumer are non-students who have the following demand curve: QB=200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is true if the monopolist practices third degree price discrimination? Total profit earned equals 2150.
- Total profit earned equals 2250.
- Total profit earned equals 2650.
- Total profit earned equals 2850.
- None of the above