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6) Suppose a monopolist can sell products in both the home market and a foreign market. The monopolist can sell any amount Q at a
6) Suppose a monopolist can sell products in both the home market and a foreign market. The monopolist can sell any amount Q at a price of $12 in the foreign market. The production cost of the monopolist is given by: () = 2 + 0.5 ^2 ,
and the inverse demand function in the home market is: P = 20 0.5 .
What is the price that the monopolist charges in the home market? Calculate the quantities that the monopolist sells in the home market and in the foreign market, respectively.
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