H = 750 - 5 QH. It faces a horizontal demand curve in the US market at a price of 500. That is, it can sell any number of panels in the US market at that price. a) (4 points) How many panels will the firm sell in each market? Answer: The marginal revenue in the Chinese market is 750 -10 QH while the MR in the US market is 500. Therefore, the profit maximizing condition is to equate the marginal revenues in the two markets to the marginal cost which is 10Q. Clearly, the equated marginal revenue is 500. Therefore, the marginal cost of 10Q must equal 500. This yields a Q of 50. This gives the total amount sold by the firm in the 2 markets together. QH should be such that the marginal revenue in the Chinese market is 500. So, 750- 10 QH = 500 or QH = 25. That is, the firm will sell 25 in each market. b) (2 points) What is the profit maximizing price of the panels it charges in the Chinese market? Answer: The profit maximizing price in the Chinese market is PH = 750 - 5 QH = 625. c)