Firm X sells its main product in the domestic market at P* = $100 and produces it at amarginal cost of $50. It is considering selling the product in a foreign market. It hasestimated the elasticity of demand in the foreign market to be E= -3.5, and the extra costPof serving the foreign market (shipping and so on) comes to about $10 per unit. Oneexecutive advises setting the foreign price at $110 to cover the shipping cost. Anothersuggests discounting the price to $90 because foreign demand is so