Essay
Use this information for a discriminating monopolist to answer this question: The home market demand curve is P = 200 - Q; the foreign market demand curve is P = 160 - 2Q; and the firm's marginal cost is a constant $20 per unit.
I. Find the discriminating monopolist's price and quantity in each market.
II. Find the discriminating monopolist's profit in each market.
III. Suppose the foreign country imposes an antidumping tariff. How large is the tariff?
IV. What is the discriminating monopolist's profit in the foreign market after the antidumping tariff is applied?
Correct Answer:
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I. To find the discriminating monopolist...View Answer
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