Suppose a monopoly sells its product in two countries and resale is not possible. The inverse demand

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Suppose a monopoly sells its product in two countries and resale is not possible. The inverse demand curves in the two countries are \(p_{1}=200-10 Q_{1}\) and \(p_{2}=122-5 Q_{2}\). The marginal cost of production in the first country is constant at 20 but is higher by 2 in the second country due to shipping costs. What is the monopoly's optimal price in each country, and what is the relationship between marginal revenue in the two countries?

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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