a) Japan would purchase in this market when MFC = MRC( increase in cost because extra unit is equal to incremental revenue by selling that unit
1+Q = 13-1/2Q
= Q = 8
Putting this value of Q in supply function we get the price
P = 1+1/2*(8) = 5
Japan would purchase 8 units at a price of $5/unit
Homework 4 1. Consider the Asia-Pacific LNG market, which is dominated by Japan. Suppose that the...