2. This question relates to dumping. Consider a firm which faces a domestic inverse demand curve of P = 200 - . 5Qd, where Qd is quantity demanded. Domestic costs of production are C = .5(Qs )2 , where Qs is the quantity produced by the domestic firm. The world price is $125. Assume that this firm does not face foreign competition in its home market, where it has a monopoly, but that it is also free to sell in the world market at the world price. a. Compute the total quantity produced by the firm, as well as the quantity sold in the home and foreign markets. Also, compute the domestic price and firm profits. b. Draw a graph showing how the price and quantity are determined.

2. This question relates to dumping. Consider a rm which faces a domestic inverse demand curve of P = 200 -. 5 Q, where Q"1 is quantity demanded. Domestic costs of production are C = .5 (Q5)2 , where Q' is the quantity produced by the domestic rm. The world price is $125. Assume that this rm does not face foreign competition in its home market, where it has a monopoly, but that it is also free to sell in the world market at the world price. a. Compute the total quantity produced by the rm, as well as the quantity sold in the home and foreign markets. Also, compute the domestic price and rm prots. b. Draw a graph showing how the price and quantity are determined