The TimexGroup, a large multinationalwatchmaker, has its headquarters in the Netherlands. It has subsidiaries in manycountries, including the Timex Group USA and TMXPhilippines, Inc. One particular type of specialty watch is produced in the Philippines for export to the Timex Group USA. Suppose the inverse demand curve for this watch in the United States is

pequals

p = 170 - 2Q

where p is measured in dollars and Q is measured in thousands of watches per week. These watches are produced at a constant marginal cost of $10 per watch by TMX Philippines. Timex USA treats the transfer price charged by TMX Philippines as its marginal cost.

What transfer price would maximize the profit of TMXPhilippines?(Hint: For any given transfer price the Timex Group USA will demand some quantity of watches. This relationship determines the demand facing TMXPhilippines.)

If TMX Philippines maximies their ownprofit, then they will charge a transfer price of $

(Enter your response as a wholenumber.)