MICRO Doubt

Posted by Shefali on Apr 30, 2014; 3:17pm
URL: http://discussion-forum.276.s1.nabble.com/MICRO-Doubt-tp7588117.html

Suppose that a monopolist operates in a domestic market facing a
demand curve p= 5 - 3/2 qi, where p is the domestic price and  qi is
the quantity sold in the domestic market. This monopolist also has the
option of selling the product in the foreign market at a constant price
of 3. The monopolist has a cost function given by C(q) = q2 , where q
is the total quantity that the monopolist produces. Now, answer the
following questions.
(a) How much will the monopolist sell in the domestic market and
how much will it sell in the foreign market?