1.In a territory, there are two available markets for coffee beans:

Market 1:Export:This is the market in which higher prices are available for the producer. However, there are limitations in the volumes that can be sold in this market because the government sets a limit on the volume of exports and each producer needs to get an authorization to export its production. It is rare for the government to authorize more than 25% of the total production for export.

Market 2:Domestic:The prices are lower in this market as compared to the export market, but there are no restrictions in terms of volume (other than the demand for the product by purchasers).

Which is the principal market?

a.Export

b.Domestic

Explain what the factors were that guided your choice for the principal market.