Suppose a U.S.-based producer of high-quality baseball bats is contemplating expanding sales to Japan. In the U.S., the firm faces a demand elasticity of = -1.5 and maximizes profit by setting the price at $75/bat. In Japan, the bat maker will face a demand elasticity of = -2 and will also incur a competitive transportation cost of $10/bat. In order to maximize profit, what price should the bat maker set in Japan?

a. $50

b.$55

c.$60

d.$65

e$70

f.$75

g.$80

h.$85

I .$90

j.$95

k.$100

L.$105

M.$110

N,$115

O$120

PNone of the above