A Monopolistwill construct a single plant to serve twospecially separated markets in which she can charge different prices without fear of competition or resale between markets. The monopolist locates her plant at market 2. The monopolist's demand and production cost functions are as follows:

P₁=200-4q₁Market demand in market 1

P₂=240-6q₂Market demand in market 2

TC= 160(q₁+q₂)-2(q₁+q₂)²Cost function

1)Determine the optimal values for q₁,q₂,p₁,p₂

2)What is the price elasticity in each market

3)Which market the consumers are more responsivness (more elastic)

4)What isthe total quantity of the product the monopolist

producing?

5)What is the quantity exported?

6)What is the quantity sold domestically

7)Why there is a difference in terms of prices and quantities in these markets?