PART 2 The price in Japan is ___? A monopoly sells its good in the United...

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A monopoly sells its good in the United States, where the elasticity of demand is - 2.1, and in Japan, where the elasticity o

PART 2

The price in Japan is ___?

business economics

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Answer 1

Answer #1

Answer

P=MC/(1+(1/e))

P=price

MC=marginal cost

e=elastcity of demand

Price in United states is:

P=11/(1+(1/(-2.1)))

=21

Price in Japan is:

P=11/(1+(1/(-5.2)))

P=13.6190476

=13.62

the price in the US is $21.00 and the price in Japan is $13.62

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Answer 2

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