A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is

Pa = 110- Qa

and the Japanese inverse demand function is Pj = 90-2Qj,

where both prices, Pa and p₁, are measured in dollars. The firm's marginal cost of production is m = $25 in both countries. If the firm can prevent resales, what price will it charge in both markets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.)

The equilibrium price in Japan is $ (round your answer to the nearest penny)

Answer rating: 100% (QA)

Given Inverse demand function of Japon P 902Q 0 Under monopoly optimal outpu... View the full answer