Need help with part B: A monopoly sells its goods in the U.S. and Japanese markets. The American inverse demand function is: PA = 140-3QA and the Japanese inverse demand function is: PJ = 100-2QJ Assume that the rm's marginal cost of production is m = 50 in both countries. (a) If the firm can price discriminate (prevent resale between markets), what price will it charge, how much will it produce, and how much profit will it earn in each market. (b) Resolve the problem assuming that the firm cannot price discriminate (e.g., pA = pJ = p).

Need help with part B: A monopoly sells its goods in the U.S. and Japanese markets. The American inverse demand function is: PA = 140-3QA and the Japanese inverse demand function is: PJ = 100-2QJ Assume that the rm's marginal cost of production is m = 50 in both countries. (a) If the firm can price discriminate (prevent resale between markets), what price will it charge, how much will it produce, and how much profit will it earn in each market. (b) Resolve the problem assuming that the firm cannot price discriminate (e.g., pA = pJ = p).

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.9P

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