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What price microsoft should charge in canada

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Suppose demand for Microsoft Software in the US is: P = 200 - Qus, and marginal revenue is MR = 200 - 2Qus where quantity is measured in millions. Demand for software in Canada is P = 100 - 2Qca and marginal revenue is MR = 100 - 4Qca. The marginal and average cost of production for Microsoft is $50.

a. What price Microsoft should charge in Canada? In the US? How much will it sell if it aims for maximizing profits?

Reference no: EM132338401

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