A monopoly book publisher with a constant marginal cost (and average cost) of MC=2 sells a novel in only two countries and faces a linear inverse demand curve of P₁ = 6-0.50, in Country 1 and P₂ =9-Q₂ in Country 2. What price would a profit-maximizing monopoly charge in each country with and without a ban against shipments between countries? With a ban against shipments between countries, the monopoly would charge Country 1 a price of and Country 2 a price of With the ban, the monopoly's profit (x) is Without a ban against shipments betwen countries, the monopoly would charge both countries a price of Without the ban, the monopoly's profit (x) is P₁ = $ P₂ = $(Enter your response rounded to two decimal places.)

A monopoly book publisher with a constant marginal cost (and average cost) of MC=2 sells a novel in only two countries and faces a linear inverse demand curve of P₁ = 6-0.50, in Country 1 and P₂ =9-Q₂ in Country 2. What price would a profit-maximizing monopoly charge in each country with and without a ban against shipments between countries? With a ban against shipments between countries, the monopoly would charge Country 1 a price of and Country 2 a price of With the ban, the monopoly's profit (x) is Without a ban against shipments betwen countries, the monopoly would charge both countries a price of Without the ban, the monopoly's profit (x) is P₁ = $ P₂ = $(Enter your response rounded to two decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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