A monopoly book publisher with a constant marginal cost (and average cost) of MC

Question

A monopoly book publisher with a constant marginal cost (and average cost) of MC 9 sells a novel in only two countries and faces a linear inverse demand curve of p1-6-0.5Q! in Country 1 and P2 21-Q2 in Country 2. What price would a profit-maximizing monopoly charge in each country with and without a ban against shipments between countries? With a ban against shipments between countries, the monopoly sell Country 1 Q = 0 units and Country2 2 6 units. (Enter your responses rounded to two decimal places) Without a ban against shipments betwen countries, the monopoly would maximize profit by selling units.

Explanation / Answer

Answer : Given,

Q1 = 0 units, and Q2 = 6 units. The monopolist sells these quantities in country-1 and country-2 respectively. This means the monopolist's total selling quantity is Q = Q1 + Q2 = 0 + 6 = 6 units.

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