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Question 3 1 pts Consider a market for refrigerators. Suppose that the price elasticity is such that b = 1/500. fixed cost F = $50,000,000
Question 3 1 pts 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 O 100 O 92 O 29 O 54 O 25 O 42 O 95
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