Celery PatchDolls, a small doll producer inMalaysia, is considering producing a new doll variety. Production of this doll type requires an initialset-up cost, followed by constant variable cost. The cost function of producing variety i is

C = 12,000 + 2Q_i

where Q_i is the quantity of variety i. The demand curve for this particular variety in Malaysia is

Qi = 3,000 - 1,000p

Celery Patch seeks to maximize its profit and will not produce the doll if it would make a loss (p

1.If Celery Patch can only sell inMalaysia, then it should (produce / not produce pick one)

2.If Celery Patch can sell in Malaysia andSingapore, then it should (produce / not produce pick one)