A monopolist book publisher with a constant marginal cost of 2 and no fixed costs sells novels in only two countries. Assume the inverse demand curve in country 1 is given by P1=10-2/3Q and the inverse demand curve in country 2 is given by PW=18-Q Assuming book shipments across countries are banned so that price discrimination occurs. What is the equilibrium price and quantity of books sold by the monopolist in country 1? Options are: a)p=1, q=16 b) p=1 q=12 c) p=4, q=8 d)p=6, q=6 Continuing to assume price discrimination, what is the equilibrium price and quantity of books sold by the monopolist in country 2? a)p= 4,q=14 b)p= 6,q=12 c)p= 8,q=10 d)p= 10,q=8 If book imports are permitted in both countries so that price discrimination is impossible, what is the equilibrium price and quantity sold in the two countries combined? a)p=6,q=20 b)p=7,q=20 c)p=10,q=8 d)p=12,q=6
| A monopolist book publisher with a constant marginal cost of 2 and no fixed costs sells novels in only two countries. Assume the inverse demand curve in country 1 is given by |
P1=10-2/3Q
and the inverse demand curve in country 2 is given by
PW=18-Q
Assuming book shipments across countries are banned so that
Options are:
a)p=1, q=16
b) p=1 q=12
c) p=4, q=8
d)p=6, q=6
Continuing to assume price discrimination, what is the equilibrium price and quantity of books sold by the monopolist in country 2?
a)p= 4,q=14
b)p= 6,q=12
c)p= 8,q=10
d)p= 10,q=8
If book imports are permitted in both countries so that price discrimination is impossible, what is the equilibrium price and quantity sold in the two countries combined?
a)p=6,q=20
b)p=7,q=20
c)p=10,q=8
d)p=12,q=6
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