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Separate markets in the united states and england

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A monopolist has a constant marginal cost of $2 per unit and no fixed costs. He faces separate markets in the United States and England. He can set one price p1 for the U.S market and another price p2 for the English market. If demand in the United States is given by Q1 = 6,000 - 600p1 and demand in England is given by Q1 = 2,400 - 400p2, then the price in the United States will

a. be larger than the price in England by $2

b. be smaller than the price in England by $2

c. equal the price in England

d. be larger than the price in England by $4

e. be smaller than the price in England by $4

Reference no: EM131433922

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