Question
A monopolist book publisher with a constant MC=2 and no fixed costs sells novels in two countries. Inverse demand curve of Country 1 is as
A monopolist book publisher with a constant MC=2 and no fixed costs sells novels in two countries. Inverse demand curve of Country 1 is as follows: P1=10-32Q While the inverse demand curve for Country 2 is: P2=18-Q If book imports are permitted in both countries so that price discrimination is impossible, what is the equilibrium price and quantity sold in the two countries combined? Options are: (these are the only ones that are provided, there's been calculations with other answers but those answers are not listed, i cannot stress this enough) P=6, Q=20 P=7, Q=20 P=10, Q=8 P=12, Q=6
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