Consider a firm sells its product in two different countries. It needs to decide what quantities to be sold in Country 1 (9) and Country 2 (92). The inverse demand functions are p 60 - 0.59 in Country 1 and p2 = 90 - 92 in Country 2. Then, its total revenue function will be: = R(9,92) = R (9) + R (92) = (60 - 0.5q)q + (90-92)92 = 609 - 0.5q1 +9092 - 9/ Suppose the firm has a constant per unit cost of c = 10, regardless of the country where the goods are sold. So, its total cost function is given by C(q, 92) = 10(9 +92). Therefore, the firm's profit function is T(9, 92) = R(q, 92) - C(9, 92) = 50q0.5q1 + 8092 - 9 The firm's problem is to choose the optimal output levels in each country (9, 92), that maximizes its total profit.