A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 90-Q₂¹ and the Japanese inverse demand function is P₁ = 80-2Q;, where both prices, pa and p₁, are measured in dollars. The firm's marginal cost of production is m = $25 in both countries. If the firm can prevent resales, what price will it charge in bot narkets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $ 52.50. (round your answer to the nearest penny) The equilibrium price in the U.S. is $ (round your answer to the nearest penny)
A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 90-Q₂¹ and the Japanese inverse demand function is P₁ = 80-2Q;, where both prices, pa and p₁, are measured in dollars. The firm's marginal cost of production is m = $25 in both countries. If the firm can prevent resales, what price will it charge in bot narkets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $ 52.50. (round your answer to the nearest penny) The equilibrium price in the U.S. is $ (round your answer to the nearest penny)
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.9P
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