Question 3: Monopoly pricing [7 marks; 3,2,2] Consider a monopolist udnicbfaces the following demand curves for its product in the export market A and the domestic market B. Inverse demand curve in the export market: QA = 360 2p), Inverse demand curve in the domestic market: 03 = 200 9; where pi and Qi denote price and quantity sold in market [wherei= A, B. The monopolist's cost function is given b: C(Q) = [1.2502 where Q = QA + 05. Assume that resale between the two markets is not possible and the monopolist maximizes prots. (a) (3 marks) Find pa,and pathat maximizes monopolist's prots. (b) (2 marks) Suppose home government in country B imposes a restriction that the monopolist cannot sell more in the export market. That is: QAEQB must hold. However, the monopolist can charge two different prices in countries A and B. Find the amount of output that monopolist sells in each country and the resulting price levels (which will be different for A and B) that maximizes the monopolist's joint prots (i.e., the sum of prots in the two countries). (c) (2 marks) Suppose that the WTO prohibits price discrimination. That is, the monopolist cannot charge two different prices in A and B. Find the unique price that maximizes the monopolist's joint prots (i.e., the sum of prots in the two markets)