Suppose that a monopolist sells its product in two countries: Japan and Canada. The monopolist's marginal cost is $2, and the total fixed cost is $5. The direct market demand functions in the two countries are as follows: QJ = 16 - 2PJ and QC = 9 - 0.5PC, where the subscript J denotes Japan and the subscript C denotes Canada.

Assume that the monopolist can prevent resale from one market to another, i.e., a product in Japan will not be resold in Canada and vice versa.

a) (4 points) What quantity and price does the firm sell in Japan to maximize its total profit? QJ* = __________________ units. PJ* = $ ________________

b) (4 points) What quantity and price does the firm sell in Canada to maximize its total profit? QC* = __________________ units. PC* = $ ________________