Firm A, a leading cement company sells its output both to domestic and foreign market. Suppose domestic demand is given by = 3,000 and foreign demand...
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Firm A, a leading cement company sells its output both to domestic and foreign 

market. Suppose domestic demand is given by = 3,000 ʷ and foreign demand is given by 

= 4,125 ʷ 0.5 . this firm has a total cost = 10 + 200. 

i. Find and graph the quantity produced, the quantity sold in each market and the price 

charged in each market if it wants to maximize its profit! 

ii. How much profit will this firm make?  

iii. Would it make sense for this firm to sell the entire quantity produced to 

domestic market only? Explain your answer verbally and mathematically. 

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