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A monopoly sells its good in the U. S. and Japanese markets. The American inverse demand function is , and the Japanese inverse demand function is , where both prices, pa and pj, are measured in dollars. The firm's marginal cost of production is m = $ 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.)
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A monopoly sells its good in the U. S. and Japanese markets. The American inverse demand function is...
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