Question: ith constant marginal cost, MC = 20, that it sells in two countries. The inverse linear demand curve is p1 = 60 - 2Q1 in
ith constant marginal cost, MC = 20, that it sells in two countries. The inverse linear demand curve is p1 = 60 - 2Q1 in Country 1 and p2 = 40 - Q2 in Country 2. What is the equilibrium price and quantity in each country if resale between the countries is not possible? What is the equilibrium price and quantity in each country if resale between the countries is possible?
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