What is the price and quantity produced in both markets

Assignment Help Business Economics

Reference no: EM13981499

GoPro holds a monopoly in two countries where it sells video cameras, USA and Canada. The demand functions for the two regions are,

Q(USA)=105-P(USA)

Q(CANADA)=42.5-.5P(CANADA)

GoPro has a unique manufacturing process where it can produce each video camera for $20. Assume there are very strict laws that prevent the resale of the product across borders.

A. What is the price and quantity produced in both markets?

B. Show that the relationship from part A also holds when evaluated with elasticities.

Reference no: EM13981499

Questions Cloud

Kind of theoretical distribution : Plot a CDF based on these data. What kind of theoretical distribution do you think would be appropriate for these data? Why?

Evaluate of website based on the visibility and affordance : Evaluate of the website based on the visibility and affordance. Does the website optimal balance between the number of pages refreshes and delay between page refreshes? Would your answer change if you were using a different network, or assessing th..

To get going with your business very quickly : To get going with your business very quickly, you plan to buy an existing business. You expect the business you are buying to have an after tax cash flow $8 million per year for the next 5 years. Your WACC is 10% returns. What is the maximum amount y..

Details:research the current value : Details:Research the current value of the following economic indicators: GDP CPI

What is the price and quantity produced in both markets : GoPro holds a monopoly in two countries where it sells video cameras, USA and Canada. The demand functions for the two regions are, GoPro has a unique manufacturing process where it can produce each video camera for $20. Assume there are very strict ..

Find speed of each isotope before entering mass spectrometer : Two isotopes of carbon , C12 and C13 traveling with the same velocity move through a isotope has a charge e = 1.6 x 10-19 C and enters a mass spectrometer in which the magnetic field B is 0 85 T The ions then travel along a circular path inside the ..

Developing a quality-control program : A plant manager is interested in developing a quality-control program for an assembly line that produces light bulbs. To do so, the manager considers the quality of the products that come from the line.

Consider labor surplus economy producing single output : Consider a labor surplus economy producing a single output, which can be consumed (as food) or invested (as capital). Labor, once employed, must be paid a fixed wage w which is fully consumed. All surpluses from production are reinvested. Draw a diag..

Total amount of mobile phones demanded in the market : Apple feels it is a price leader in the mobile phone market with all the other producers acting as followers. The total demand for mobile phones is given. If Apple wants to maximize profits, how many mobile phone units should they produce? How much s..

User Account

All Pages