A firm is able to charge different prices in the Domestic and Foreign markets. The Domestic market demand curve is Qd = 24 - Pd , while the Foreign market demand curve is Qf = 18 - Pf. Suppose the firm has a cost curve for total output Q given by ?C(Q) = Q^2 What are the optimal quantities and prices for the two markets?
Print this page out and use the space below and the back to write out and clearly indicate your answers. Do not use this sheet as scrap paper, but use it to neatly present your work. A firm is able to charge different prices in the Domestic and Foreign markets. The Domestic market demand curve is ap 24 pD, while the Foreign market demand curve is qF 18 pF. Suppose the firm has a cost curve for total output q given by c(q) q2. What are the optimal quantities and prices for the two markets?