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A monopolist supplies two markets, one at home, the other abroad. The de- mand functions are q1=10p1, 92:50-5172 where q] denotes home sales and q;
A monopolist supplies two markets, one at home, the other abroad. The de- mand functions are q1=10p1, 92:50-5172 where q] denotes home sales and q; foreign sales. The rm's total-cost func- tion is C = 05(6)] + (22)2 (3) Find its protmaximizing output and prices (no arbitrage between the markets is possible)
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