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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

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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 Home country drops by +

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