Question

Suppose that the demand curve for Paxil in the US is given by P=25-Q and in...

Suppose that the demand curve for Paxil in the US is given by P=25-Q and in Greece it is P=10-Q and that it is a monopolist in both countries. Suppose that MC is 2 in both countries. What are the Paxil prices GlaxoSmithKline should set for US and Greece that would maximize global profits? Please draw the graphs in addition to the numerical solution.

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