A monopoly sells in two countries and resale between the

Question

A monopoly sells in two countries, and resale between the countries is impossible. The demand curves in the two countries are p1 = 100 - Q¹ and p2 = 120 - 2Q². The monopoly’s marginal cost is MC= 0.8Q since C(q) = 0.4Q². Solve for the equilibrium price in each country. Then calculate the firm’s profits and compare to the case when it must instead charge the same price in both countries. Hint: because MC is not constant in this case, you’ll need to determine (and use) the firm’s total marginal revenue curve to answer this question correctly.