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QUEBn 3: Monopoly [T marks; 3,2,2] Suppose a monopoly dnig manufacturer faces the following inverse demand curves for its product in two dierent countries 1

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QUEBn 3: Monopoly [T marks; 3,2,2] Suppose a monopoly dnig manufacturer faces the following inverse demand curves for its product in two dierent countries 1 and 2. Inverse demand curve in country 1: p1 = cos Q1 Inverse demand curve in country 2: p2 = 130 ESQ: where Pi and Eli denote price and quantityr sold in country i respectively and i = 1, 2. The monopolist's costfunction is given by DID} = 12512 where Q = Q1 + Q2. Assume that resale between the countries is not possible and the monopolist maximizes prots. {a} {3 marks} Find p1 and p2 that maximizes monopolist's prots

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