Assume that a monopolist has the following linear market demand function: P= 160-4Q, where P=price and Q=quantity demanded.The monopolist's average and marginal cost curves are constant, and both always equal to $40.The monopolist charges $120 to people who belong to a certain group (group1) and $60 to people who belong to another group (group2).What is the monopolist's economic profit?

MCQs on major topics and theories in the field of Industrial Organization. Topics include: Market structure analysis and the strategic behaviors of competing firms, including (but not limited to) product differentiation, collusion, price discrimination, pricing strategy, non-price discrimination (i.e. advertising), horizontal mergers, vertical integration, and vertical restraints.