Amonopoly is a one-firm industry that produces a product with no close substitutes and with substantial barriers to entry. there are other firms in the industry and there are substitutes for microsoft's productsprice discrimination occurs when a firm charges different consumer groups different prices for the same product. ex. movie theatre giving a student discountdeadweight loss is composed of consumer surplus and producer surplus that is lost from producing less than the efficient output.

suppose that a monopolist is selling 100 units of a product at a price of $20 each. if the average variable cost at this level of output is $10.50 and average fixed cost at this level of output is $8, how much total economic profit is the firm earning?