Global motors sells its automobies in both the United States and Japan. Due to trade restriction, a vehicle sold in one country cannot be resold in the other. The demand functions for the two countries are:
US P=30,000-0.4Q
Japan P=20,000-0.2Q
The firm's total cost function is TC=10,000,000+12,000Q. What price should Global motors charge in each country in order to maximize profit? What is the maximum profit?