Foreign Discriminating Monopoly The Foreign monopoly faces different demand curves and charges different prices in its local and export markets. Locally, its demand curve is D* with marginal revenue MR*. Abroad, its demand curve is horizontal at the export price, P, which is also its marginal revenue of MR. To maximize profits, the Foreign monopolist chooses to produce the quantity Q₁ at point B, where local marginal cost equals marginal revenue in the export market, MC* = MR. The quantity sold in the local market, Q₂ (at point C), is determined where local marginal revenue equals export marginal revenue, MR* = MR. The Foreign monopolist sells Q₂ to its local market at P*, and Q₁ − Q₂ to its export market at P. Because P < P* (or alternatively P < AC₁), the firm is dumping.