Marginal cost of producing extra unit of microprocessor

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Two microprocessor manufacturers, one in Japan, one in US selling products to only the US customers. Initially, 1 US dollar equals to 100 Yen (e = 100 Y/$) and the market price for a microprocessor is $20. The marginal cost of producing an extra unit of microprocessor is 1200 Yen for the Japanese firm and $12 for the US firm. What is the impact of a 50% devaluation of the Yen (that is, e = 150) on the Japanese firm's market share?

Reference no: EM131096472

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