A monopoly sells its good in the United States, where the elasticity of demand is -2, and in Japan, where the elasticity of demand is -5. Its marginal cost is $10. At what price does the monopoly sell
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According to the given condition, if a monopoly sells its goods in United States where the elasticity of demand is ... Moreover, marginal cost is $10 in both the countries. ... is a function of the corresponding price and the price elasticity of demand: Now, calculating price at which a monopoly will sell its good in United States:.
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Price at which the monopoly will sell its goods in the US is $20.
Price at which the monopoly will sell its goods in Japan is $12.50.
Given information
Elasticity of demand in the US is -2.
Elasticity of demand in Japan is -5.
Marginal cost is $10.
Price at which the monopoly will sell its goods
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