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A monopolistic pharmaceutical company sells a pill in two countries, and resales between the countries are...

A monopolistic pharmaceutical company sells a pill in two countries, and resales between the countries are impossible. The demand curves in the two countries are: P1 = 100− Q1 and P2 = 120−2Q2. The monopolist’s marginal cost is $30. Solve for the equilibrium price in each country. What is the equilibrium price and quantity if the monopolist decides to treat the two markets as one big market and charge a unique price? Compare the profits in these two situations.

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