A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is
Question:
A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is pA = 100 – QA, and the Japanese inverse demand function is pJ = 80 – 2QJ, where both prices, pA and pJ, are measured in dollars. The firm’s marginal cost of production is m = 20 in both countries. If the firm can prevent resale, what price will it charge in both markets?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
By differentiating we find that the American marginal revenue function is MR A 100 2 Q A and the Jap...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Managerial Economics and Strategy
ISBN: 978-0321566447
1st edition
Authors: Jeffrey M. Perloff, James A. Brander
Question Posted:
Students also viewed these Economics questions
-
A monopoly sells its good in the United States, where the elasticity of demand is -2, and in Japan, where the elasticity of demand is -5. Its marginal cost is 10. At what price does the monopoly sell...
-
A monopolists inverse demand function is P = 150 - 3Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1 (Q1) = 6Q1, and the marginal cost of...
-
A monopolys inverse demand function is p = Q0.25 A0.5, where Q is its quantity, p is its price, and A is the level of advertising. Its constant marginal and average cost of production is 6, and its...
-
Questions for discussion: read the material in Exhibit 3.3 below and answer the three questions presented at the end of the exhibit. EXHIBIT 3.3 WHAT IS THE MOST DESIRABLE LEVEL OF POLLUTION?...
-
In your opinion, should corporations be socially and environmentally responsible? Why?
-
Ammeters often contain fuses that protect them from large currents, whereas voltmeters seldom do. Explain.
-
Find the natural frequencies of a beam of length \(l\), which is pin connected at \(x=0\) and fixed at \(x=l\), using one beam element.
-
Joakim Keynes is the manager of the Repairs and Maintenance Department of JB Industries. He is responsible for preparing his departments annual budget. Most managers in the company inflate their...
-
A 59.0-kg boy runs at a speed of 13.0 m/s and jumps onto a cart. The cart is initially at rest. i) Specify the kind of "collision" ii) If the speed of the cart with the boy on it is 2.80 m/s, what is...
-
According to the U.S. Census Bureau (www.census.gov), nominal income for the typical family of four in the United States (median income) was $24,332 in 1980, $32,777 in 1985, $41,451 in 1990, and...
-
According to a report from the Foundation for Taxpayer and Consumer Rights, gasoline costs twice as much in Europe as in the United States because taxes are higher in Europe. However, the amount per...
-
A patent gave Sony a legal monopoly to produce a robot dog called Aibo ( eye- BO). The Chihuahua- size pooch robot can sit, beg, chase balls, dance, and play an electronic tune. When Sony started...
-
Why do some managerial accountants choose not to allocate common costs in segmented reports?
-
Explain why you must include the opportunity cost of using a resource as an incremental cost of a project.
-
Even if the CAPM is not perfect, why might we continue to use it in corporate finance?
-
If a firm makes an investment that has a positive NPV, how does the value of the firm change?
-
How can an uninformed or unskilled investor guarantee herself a non-negative alpha?
-
How do we forecast unlevered net income?
-
(a) For carbon, calculate the energy when an electron falls from n = 3 to n = 2, then from n = 2 to n = 1. Then add these for the total energy released in the process. (b) Calculate the energy...
-
Use integration by parts to evaluate the following. Check your answer by taking the derivative. x2e-xdx
-
Please explain why NCPs are an expression of multilateralism under international environmental law.
-
If a price is not an equilibrium price, there is a tendency for it to move to its equilibrium level. Regardless of whether the price is too high or too low to begin with, the adjustment process will...
-
Assume the market for corn is depicted as in the table that appears below. a. Complete the table below. b. What market pressure occurs when quantity demanded exceeds quantity supplied? Explain. c....
-
Determine whether each of the following statements is true, false, or uncertain. Then briefly explain each answer. a. In equilibrium, all sellers can find buyers. b. In equilibrium, there is no...
-
Required: Prepare a consolidation worksheet for 2 0 X 9 . Assume the company prepares the optional Accumulated Depreciation Consolidation Entry and that the depreciation expense was the same amount...
-
Find the slope -intercept form for the line passing through (7,2) and parallel to the line passing through (3,8) and (-5,6). The slope -intercept form for the line passing through (7,2) and parallel...
-
The cost function for a certain company is C = 20x + 700 and the revenue is given by R = 100x - 0.5x^(2). Recall that profit is revenue minus cost. Set up a quadratic equation and find two values of...
Study smarter with the SolutionInn App