1.)Suppose that individual demand for a product is given by Qd=1000-5P.Marginal revenue is MR = 200 - 0.4Q, and marginal cost is constant at $20.There are no fixed costs.

a.)The firm is considering a quantity discount.The first 400 units can be purchased at a price of $120, and further units can be purchased at a price of $80.How many units will the consumer buy in total?

b.)Show that this second-degree price-discrimination scheme is more profitable than a single monopoly price.