A monopoly book publisher with a constant marginal cost (and average cost) of (M C=1) sells a
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A monopoly book publisher with a constant marginal cost (and average cost) of \(M C=1\) sells a novel in only two countries and faces a linear inverse demand curve of \(p_{1}=6-\frac{1}{2} Q_{1}\) in Country 1 and \(p_{2}=9-Q_{2}\) in Country 2. What price would a profit-maximizing monopoly charge in each country with and without a ban against shipments between the countries?
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i Determine the profitmaximizing price that the monopoly sets in each country by setting the relevant marginal revenue equal to the marginal cost If t...View the full answer
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