4. (Banerjee 10.4) Wyatt Labs has patented a new drug, which is being produced in two plants, one in US and another in Canada. Suppose all prices are in US dollars. Drugs produced in Canada cannot be imported into the US. (a) The US demand is P =200 0.2Q 5 and the cost function of the US plantis ;4(Q)= 0.2Q2. What is the profit-maximizing quantity and price charged in the US? (b) The demand in Canada 1s P, =120 - 0.2Q.. and the cost function in the Canadian plant 18 the same as in the US .(Q) =0 .2Q2. What is the profit-maximizing quantity and price charged in Canada? (c) What 1s the marginal cost of the last dose produced in the US and in Canada? What are the total profits for each plant? (d) Suppose Wyatt Labs is now allowed to import the drug from Canada, so it is now a multiplant monopolist with no restrictions on how much it can produce and sell in each country. Assume that there are no additional costs of imports. Note that the firm's total cost function is (Q)=0 .1Q?. Calculate the quantities the monopolist sells in each country, the corresponding prices, total profit and marginal cost of producing the last dose in the US and in Canada. (e) What conclusions can you draw from the above analysis