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1. A fashion designer sells its branded products in different countries around the world. One product it sells is sunglasses, and it believes it can
1. A fashion designer sells its branded products in different countries around the world. One product it sells is sunglasses, and it believes it can split its consumers in to two submarkets: consumers located within its own country (called domestic consumers, denoted "dom ") and consumers located overseas {called international consumers, denoted "int"; The demand curves, in any given periooj, for these two different types of consumers are given as follows: PM" = 1000 - 0"\"; PM = 500 - 050'\". They face a total cost function of: TC = 1,500 + 200. Suppose that this designer; being a monopolist over its brand, decides to practice third-degree price discrimination by charging a different price in each submarket. What will be the price charge and quantity sold in each submarket? a} 490 pairs of sunglasses sold in the domestic market at a price of $510 per pair; 480 pairs of sunglasses sold in the international market at a price of $260 per pair. b) 500 pairs of sunglasses sold in the domestic market at a price of $500 per pair; 500 pairs of sunglasses sold in the international market at a price of $250 per pair. c) 41? pairs of sunglasses sold in the domestic market at a price of $583 per pair; 41? pairs of sunglasses sold in the international market at a price of $291.50 per pair. d} 1000 pairs of sunglasses sold in the domestic market at a price of $500 per pair; 1000 pairs of sunglasses sold in the international market at a price of $500 per pair. e) 24 pairs of sunglasses sold in the domestic market at a price of $9?6 per pair; 49 pairs of sunglasses sold in the international market at a price of $4?6 per pair
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