Monopoly sells in two countries

Assignment Help Business Economics

Reference no: EM131095021

A monopoly sells in two countries, and resale between the countries is impossible. The demand curves in the two countries are p1 = 100 - Q¹ and p2 = 120 - 2Q². The monopoly’s marginal cost is MC= 0.8Q since C(q) = 0.4Q². Solve for the equilibrium price in each country. Then calculate the firm’s profits and compare to the case when it must instead charge the same price in both countries. Hint: because MC is not constant in this case, you’ll need to determine (and use) the firm’s total marginal revenue curve to answer this question correctly.

Reference no: EM131095021

Questions Cloud

What are the expected loss and risk premium : Suppose an individual has the following utility function defined over wealth: U = U(√wealth). The individual has an initial wealth level of $20,000. What is the expected loss? What is the maximum amount this individual is willing to pay for insurance..

Describe the given art piece locate blue madonna : Use the Feldman Method for Critical Analysis to describe the following art piece locate "BLUE MADONNA" AT THE RINGLING MUSEUM in Sarasota Florida

Statement of purpose for firm compensation plan : 1. A statement of purpose for the firm's compensation plan specific to the department described, including rank of employees addressed. 2. A detailed explanation of employment eligibility for employment, rank, overtime and incentives.

Similarities between walker and penney : What did you see as the similarities between Walker and Penney, if any. What types of struggles, challenges, and difficulties did each have to go through to achieve what they did? How did they overcome these challenges? What did they have to do? Did ..

Monopoly sells in two countries : A monopoly sells in two countries, and resale between the countries is impossible. The demand curves in the two countries are p1 = 100 - Q1and p2 = 120 - 2Q2. The monopoly’s marginal cost is MC= 0.8Q since C(q) = 0.4Q2. Solve for the equilibrium pric..

Has cloture been demonstrated : The IRAC Method The IRAC method is an instructional tool that can aid students in the comprehension and evaluation of information so that they can make informed value decisions. It is an acronym for Issue, Rule, Analysis, and Conclusion. Although ..

What are the predominant beliefs and values : What are the predominant beliefs and values in the United States that have driven the development of the health care system? How have these beliefs and values played a part in the U.S. opposition to health care reform?

Determining the level of job satisfaction : Why should employers care about their employees' level of job satisfaction? Why are modern employees increasingly unsatisfied with their jobs? What can be done to improve their degree of satisfaction?

Consider producing private brands : Which is the most likely reason that a manufacturer that sells its own products under its own brand name(s) might consider producing private brands? to weaken the positions of its distributors. to reach additional market segments. to increase fixed c..

User Account

All Pages