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6) A rm believes the elasticity of demand it faces in its own country is - 1.1 and in the other country is - 1.5.
6) A rm believes the elasticity of demand it faces in its own country is - 1.1 and in the other country is - 1.5. Suppose the rm can charge $1 for its products in its own country and can prevent re-sales between these two countries. What price will it charge in the other country? (Hint: Use marginal revenue, price elasticity city of demand relationship)
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