A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand
function is pa=110Qa, and the Japanese inverse demand function is pj=1002Qj where both
prices, pa and pi, are measured in dollars. The firm's marginal cost of production is m=$20 in
both countries. If the firm can prevent resales, what price will it charge in both markets? (Hint:
The monopoly determines its optimal (monopoly) price in each country separately because
customers cannot resell the good.) The equilibrium price in Japan is $ (round your answer to the
nearest penny).
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A monopoly sells its good in the U.S. and Japanese markets. The Ameri.pdf
1. A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand
function is pa=110Qa, and the Japanese inverse demand function is pj=1002Qj where both
prices, pa and pi, are measured in dollars. The firm's marginal cost of production is m=$20 in
both countries. If the firm can prevent resales, what price will it charge in both markets? (Hint:
The monopoly determines its optimal (monopoly) price in each country separately because
customers cannot resell the good.) The equilibrium price in Japan is $ (round your answer to the
nearest penny)
