*3.2 A monopoly sells its goods in the German and U.S. markets. The German inverse demand function...
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*3.2 A monopoly sells its goods in the German and U.S.
markets. The German inverse demand function is pG = 900 - QG, and the U.S. inverse demand function is pA = 1,000 - 2QA, where both prices, pG and pA, are measured in dollars. The firm’s marginal cost of production is m = 300 in both countries. If the firm can prevent resale, what price will it charge in both markets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.)
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Managerial Economics And Strategy
ISBN: 9780135640944
2nd Global Edition
Authors: Jeffrey M. Perloff, James A. Brander
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