A monopoly book publisher with a constant marginal cost (and average cost) of MC sells a novel in only two countries and faces a linear inverse demand curve of in Country 1 and 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 would charge Country 1 a price of
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A monopoly book publisher with a constant marginal cost (and average cost) of MC sells a novel in...
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