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|liltuelstilrln 3: Monopoly [7 marks; 3,2,2] Suppose a monopoly dmg manufacturer faces the following inverse demand curves for its product in two dii'terent countries 1
|liltuelstilrln 3: Monopoly [7 marks; 3,2,2] Suppose a monopoly dmg manufacturer faces the following inverse demand curves for its product in two dii'terent countries 1 and 2. Inverse demand curve in country 1: p1 = 2m Q1 Inverse demand curve in country 2: p2 = 130 ESQ: where pi and Eli denote price and q:|uant'rtj,..r sold in country i respectively and i = 1, 2. The monopolist's costfunction is given by DIG} = D2532 where Q = Eli + I212. Assume that resale between the countries is not possible and the monopolist maximizes prots. {a} {3 marks} Find p1 and p2 that maximizes monopolist's prots.
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