Consider a situation where your firm considers price discrimination in two countries after forming a monopoly. The two countries are high-income countries (1) and low-income countries (2). The first country (1) has a demand curve of P1 = 120 - 7Q1, and the second country (2), has P2 = 60 - 2Q2. Its total cost function is TC = 8Q2 + 5.
1. Determine the quantity of output that the firm should sell in each country and the price that it should charge in each one.