q1=120-p1 (demand curve Australia). p1 is not greater than 100 (and q1=0 if p1>120), p1 is the price in the Australian market and q1 is the quantity demanded. they want to sell the same book in new Zealand where the demand curve is q2=100-p2.. p2 is not greater than 100 (and q2=0 if p2>100). p2 is the price in NZ and q2 is the quantity demanded.

the marginal cost of printing a book is 40 Australian dollars, there are no fixed costs.

1)if they want to set different prices in different markets, suppose no one is allowed to ship books from one market to another. find the monopoly profit-maximizing prices p1 and p2. compute the profit in market 1 and market 2 and find the consumer surplus in each market.

2)now lets say they are allowed to set the same price in both markets (p*). if the marginal cost to print the book is 40, find the value of p* that maximizes the sum of profits they make on the book. calculate the consumer surplus in each market under the uniform price p*

3) compute p* if marginal cost is 81

4)compute p* if marginal cost is 89