Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 1 (1 point) Q See Hint A monopolist named Ghost has created a viral sensation: the SuperSecretBox. Ghost estimates that the inverse demand for

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Part 1 (1 point) Q See Hint A monopolist named Ghost has created a viral sensation: the SuperSecretBox. Ghost estimates that the inverse demand for this Q1 product in the United States is P1 : 29.00 7 W' where P1 is the price in the United States measured in US. dollars. The inverse demand for the product in England is P2 : 20.00 7 % , where P2 is its price in England measured in U.S. dollars. Ghost has a cost function C(Q) : 5, 000 l 2Q, where Q is the total number of Su perSecretBoxes (Q1 + Q2) that it produces. Further assume that all production is made in one factory. Assuming Ghost must charge a uniform price and sells in both countries, how many copies should it sell? (Round your answer to two decimals if necessary.) Part 2 (1 point) 0 See Hint What uniform price should Ghost charge to maximize its prots? (Round your answer to two decimals if necessary.) 5 Part 3 (1 point) 0 See Hint What are total prots from selling to both countries for a uniform price? (Round your answer to two decimals if necessary.) 5 30760.73 Part 4 {2 points) 0 See Hint If Ghost can charge a different price in each country and wants to maximize prots, how many boxes should it sell in the United States, and what price should it charge? Quantity sold in the United States (round to two decimals if necessary): Per-unit price in the United States (round to two decimals if necessary}: 5 Part 5 {2 points) 0 See Hint As Ghost is charging a different price in each country and wants to maximize prots, how many boxes should it sell in England, and what price should it charge? Quantity sold in England (round to two decimals if necessary): Per-unit price in England (round to two decimals if necessary): $ Part 6 (1 point) 0 See Hint What are Ghost's total prots, while charging a different price in each of the two markets? (Round your answer to two decimals if necessary.) $ 32000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Commerce And Coalitions How Trade Affects Domestic Political Alignments

Authors: Ronald Rogowski

1st Edition

0691219435, 9780691219431

More Books

Students also viewed these Economics questions

Question

What is the formula used for computing BIC?

Answered: 1 week ago