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Consider a market for refrigerators. Suppose that the price elasticity is such that b=1/500, fixed costF=$50,000,000 and a marginal cost of c=$100 per refrigerator. Suppose

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Consider a market for refrigerators. Suppose that the price elasticity is such that b=1/500, fixed costF=$50,000,000 and a marginal cost of c=$100 per refrigerator. Suppose Home country has annual sales of 1 million refrigerators; Foreign country has annual sales of 2 million refrigerators; and a Third country has annual sales of 3 million refrigerators. After market integration, the price charged to the consumers in the Foreign country drops by $ 92 54 100 42 29 95 25 P=c+bn1n=FbQmt Question 3 Consider a market for refrigerators. Suppose that the price elasticity is such that b=1/500, fixed cost F=$50,000,000 and a marginal cost of c=$100 per refrigerator. Suppose Home country has annual sales of 1 million refrigerators; Foreign country has annual sales of 2 million refrigerators; and a Third country has annual sales of 3 million refrigerators. After market integration, the price charged to the consumers in the Foreign country drops by $

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