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|liitusstlon 3: Monopoly [7 marks; 3,2,2] Suppose a monopolyr dmg manufacturer faces the following inverse demand curves for its product in two different countries 1
|liitusstlon 3: Monopoly [7 marks; 3,2,2] Suppose a monopolyr dmg manufacturer faces the following inverse demand curves for its product in two different countries 1 and 2. Inverse demand curve in country:r 1: p1 = 20o Q1 Inverse demand curve in country:r 2: p2 = 13D ESQ: where pi and Qi denote price and quantity.r sold in country i respectively and i = 1, 2. The monopolist's cost function is given by GED} = D.252 where Q = Q1 + (32. Assume that resale between the countries is not possible and the monopolist maximizes prots.
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