Suppose That Samsung's Production Costs Are the Same in Both

Multiple Choice

Suppose that Samsung's production costs are the same in both China and India.Also suppose that Samsung can produce cellphones in China for an average cost of $10 per phone for 300 million phones, $12 per phone for 200 million phones, and $15 per phone for 100 million phones.If customers in India demand 100 million phones and customers in China demand 200 million phones, and there is an Indian tariff of $10 per phone, Samsung's lowest cost option is to

A) produce phones only in India and export phones to China.
B) produce phones only in China and export phones to India.
C) produce 100 million phones in India for Indian demand and produce 200 million phones in China for Chinese demand.
D) produce 150 million phones in India for Indian demand and 50 million to export to China and produce 150 million phones in China for Chinese demand.