Problem
Firm A sells the same product to its domestic market and to a foreign country F. The price of firm A's product is higher in its domestic market than in country F's market.
Describe two economic situations that will lead Firm A to choose the pricing behavior described above. Clearly state the assumptions and use graphs to assist your argument.
1) Situation 1 (Clearly label the graph for full credits).
2) Situation 2 (Clearly label the graph for full credits).
3) Does Firm A's pricing behavior harm country F's welfare in each of the above situation? Explain your answer.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.