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1. Motorized surfboards in North-America. The Banff-based company Surfus is a monopolist in the North-American market for motorized surfboards. It sells its products in the
1. Motorized surfboards in North-America. The Banff-based company Surfus is a monopolist in the North-American market for motorized surfboards. It sells its products in the US and Canadian markets. The US inverse demand function is Pus = 35 - Qus, while the Canadian inverse demand function is Pc = 20 -Qc, where both prices Pus and Pc are measured in Canadian dollars. Surfus' marginal cost of production is equal to 5 in the US and 4 in Canada. If Surfus can prevent re-sales, what price will it charge in each market? (30 points)
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