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A monopoly:r sells its good in the LLB. and Japanese markets. The American inverse demand function is pa = Bl] Eta, and the Japanese inverse
A monopoly:r sells its good in the LLB. and Japanese markets. The American inverse demand function is pa = Bl] Eta, and the Japanese inverse demand function is pi = BU 2%, where both prices, pEl and pi, are measured in dollars. The rrn's marginal cost of production is m = $15 in both countries. If the rm can prevent resales, what price will it charge in both markets? [Hint The monopoly determines its optimal [monopelv] price in each country separately because customers cannot resell the good] The equilibrium price in Japan is $|:|. {round your answer to the nearest penny}
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