Suppose that a monopoly sells in two markets with the following demands: Market A PA=1000-QAand Market B: PB=800-2QB. Its Total Cost function is given by: TC=200Q. If monopoly practices third degree price discrimination, what are its combined profits (combined from both markets)?
Select one: a. $205,000 b. $263,750 c. $295,280 d. $315,000 e. None of the above
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