A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function isPa = 90-Qa'and the Japanese inverse demand function isP₁ = 80 - 2Q;,where both prices, på and p₁, are measured in dollars. The firm's marginal cost of production is m = $25 in both countries. If the firm can prevent resales, what price will it charge in bothmarkets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.)The equilibrium price in Japan is $ 52.50. (round your answer to the nearest penny)The equilibrium price in the U.S. is $. (round your answer to the nearest penny)

Here we have a monopolist who sells products in the US and the JAPAN market. The markets are…

A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 90-Q₂¹ and the Japanese inverse demand function is P₁ = 80-2Q;, where both prices, pa and p₁, are measured in dollars. The firm's marginal cost of production is m = $25 in both countries. If the firm can prevent resales, what price will it charge in bot narkets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $ 52.50. (round your answer to the nearest penny) The equilibrium price in the U.S. is $ (round your answer to the nearest penny)

A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 90-Q₂¹ and the Japanese inverse demand function is P₁ = 80-2Q;, where both prices, pa and p₁, are measured in dollars. The firm's marginal cost of production is m = $25 in both countries. If the firm can prevent resales, what price will it charge in bot narkets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $ 52.50. (round your answer to the nearest penny) The equilibrium price in the U.S. is $ (round your answer to the nearest penny)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.9P

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