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Problem 2 Suppose Stella Artois sells beer in two countries: Country A, and Country B. In Country A, the demand for beer is QAD =

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Problem 2 Suppose Stella Artois sells beer in two countries: Country A, and Country B. In Country A, the demand for beer is QAD = 30 - PA. In country B, the demand for beer is QBD = 4,000/PB. The marginal cost of beer is MC = 10 in both countries. a) Show that Stella Artois profit maximizing price is the same in the two countries. Suppose that a large container ship uns aground in the Suez canal blocking the passageway for more than a week. As a result, the cost of shipping beer to the two countries increases and MC at Stella Artois rises to MC' = $20. b) If it could prevent resales, would Stella Artois raise the price of beer by the same amount in Country A as in Country B? Clearly justify your

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