Determine the relationship of the price in each market


A monopolist produces at constant marginal cost c = 1 It sells the product in the domestic market, where demand is Qd = 5? Pd, and some foreign markets with total demand Qf = 2? Pf Identify the prices that will set in each market and the proportion of output that exports. Determine the relationship of the price in each market with the relative elasticity of demand? Suppose now that some domestic customers find out that can buy the good of the monopolist in the foreign market, how do you expect that this would change domestic demand and pricing by monopolist?

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Macroeconomics: Determine the relationship of the price in each market
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