In the country of Nahonja, where international trade is prohibited, only one company produces and sells scooters. The following equations describe the monopolist's demand, marginal revenue, total cost, and marginal cost:

Demand: P = 10 - Q

Marginal revenue: MR = 10 - 2Q

Total cost: TC = 3 + Q + 0.5Q²

Marginal cost: MC = 1 + Q

Where Q is quantity and P is the price measured in Nahonja dollars.

1. How many scooters does the monopolist produce? At what price are they sold? What is the monopolist's profit?

2. Now, the country of Nahonja joins Trans-Pacific Partnership and there will be both exports and imports of scooters at the world price of $6. The firm that used to be a domestic monopoly is now a price taker in a competitive market. What happens to the domestic production of scooters? What about domestic consumption? Does the country of Nahonja export or import scooters?