A firm produces and sells a product in both the domestic and

SIUW Le Cummy A firm produces and sells a product in both the domestic and foreign market. The market demand functions are given as Q1 = 1200 - 10P1 (Domestic market) and Q2 = 800 - 10P2 (foreign market) where Q1 and Q2 are the quantities sold in the respective markets at prices P1 and P2 respectively. The firms total cost function is given by TC = 0.05q2 + 10000 and Q = Q1 + Q2 1) Determine the quantities and prices that maximizes the firms profits. II. What is the maximum profit for the firm