ISI doubt

[Spiti]

Can anyone please help with sub question a?
 I'm not able to get what would be the profit maximisation equation.

[Spiti]

My main doubt is should we just treat two markets separately and solve the question.
In such a case , p=7, q=3 in monopoly market; price =5 in export market is horizontal and is more than marginal cost =4. So firm would supply all output to export market.
Is this reasoning correct? Or is something more involved in this question.

[kangkan]

let q1 be the qunatity in the foreign mkt and q2 be the output sold in the domestic mkt..

Hence the reqd solution is 6q1+ (10-q2)q2 -4(qi+q2) subject to q1+q2<100...now you can solve this using lagrangean9kahn tucker conditions)

[kangkan]

i think they wud sell 5 units in the domestic mkt and 5 units in the 95 units in the foreign..cuz at prices less than 5(thats at q >5 ,the price in the foreign mkt is more)....

[Spiti]

Did you mean 5q1 + (10-q2)q2 - 4(q1+q2) because export price is 5

[kangkan]

yes..sorry 5