A monopolist book publisher with a constant marginal cost of 2 and no fixed costs sells novels in only two countries. Assume the inverse demand curve in country 1 is given by 2 P₁ = 10-30 and the inverse demand curve in country 2 is given by P2 18-Q Assuming book shipments across countries are banned so that price discrimination occurs. What is the equilibrium price and quantity of books sold by the monopolist in country 1? Continuing to assume price discrimination, what is the equilibrium price and quantity of books sold by the monopolist in country 2? If book imports are permitted in both countries so that price discrimination is impossible, what is the equilibrium price and quantity sold in the two countries combined? P-1, Q-16 P.1, Q.12 P-4, Q-8 P.6, Q6 P-4, Q=14 P.6, Q=12 P-8, Q-10 P.10, Q.8 P=6, Q=20 P.7, Q=20 P10, Q=8 D-12 0.6

A monopolist book publisher with a constant marginal cost of 2 and no fixed costs sells novels in only two countries. Assume the inverse demand curve in country 1 is given by 2 P₁ = 10-30 and the inverse demand curve in country 2 is given by P2 18-Q Assuming book shipments across countries are banned so that price discrimination occurs. What is the equilibrium price and quantity of books sold by the monopolist in country 1? Continuing to assume price discrimination, what is the equilibrium price and quantity of books sold by the monopolist in country 2? If book imports are permitted in both countries so that price discrimination is impossible, what is the equilibrium price and quantity sold in the two countries combined? P-1, Q-16 P.1, Q.12 P-4, Q-8 P.6, Q6 P-4, Q=14 P.6, Q=12 P-8, Q-10 P.10, Q.8 P=6, Q=20 P.7, Q=20 P10, Q=8 D-12 0.6

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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