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

Multiple Choice

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