A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demand and marginal revenue for the two markets are: Upper P 1 equals 20 minus Upper Q 1P1=20−Q1 MR 1 equals 20 minus 2 Upper Q 1MR1=20−2Q1 Upper P 2 equals 30 minus 2 Upper Q 2P2=30−2Q2 MR 2 equals 30 minus 4 Upper Q 2MR2=30−4Q2 The monopolist's total cost is Upper C equals 5 plus 5 (Upper Q 1 plus Upper Q 2 )C=5+5Q1+Q2.

If canada has a surplus of paper products produced but its consumers demand more cleaning solutions, and the us has an abundance of cleaning solutions but consumers are demanding more paper products, how would trade benefit both countries? trade would assist both countries by creating excess demand. trade would assist both countries by strengthening their natural resources. trade would assist both countries to both reduce excess supply and satisfy market demand.