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Business, 15.05.2021 22:00 kaitttt

A monopolist sells its products in two countries and resale from customers is not possible. The inverse demand curve for the monopolist is p_1=150-\frac{3}{2}Q_1 150 in country 1 and p_2=125-2Q_2 in country 2. Production takes place in country 1, at a constant marginal cost per product of m = 30. Selling its product in country 2 also requires a transportation cost, which is t = 5 per product. Determine for both countries: 1) the monopolist’s optimal price and quantity; 2) the price elasticity of demand at the monopolist’s optimum; and 3) the Lerner‐index.

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A monopolist sells its products in two countries and resale from customers is not possible. The inve...
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