The editorial Harper modern classics holds the rights to One Hundred Years of Solitude by Gabriel Garcia Marquez. The editorial sells the book both in the US and Colombia. The demand for the book in the US is given by Pus= 36-4Qus . The demand for the book in Colombia is given by: Pcol = 24 - 42col . If MC-4 and Harper cannot price discriminate, who many units should Harper produce in the Colombian market to maximize profit? 0.75 1.75 2.75 3.75 4.75

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter18: Asymmetric Information
Section: Chapter Questions
Problem 18.3P
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The editorial Harper modern classics holds the rights to One Hundred Years of
Solitude by Gabriel Garcia Marquez. The editorial sells the book both in the US and
Colombia. The demand for the book in the US is given by
Pus = 36 - 4Qus
The demand for the book in Colombia is given by:
= 24 - 42col
. If MC-4 and Harper cannot price discriminate, who many units should Harper
produce in the Colombian market to maximize profit?
0.75
1.75
2.75
3.75
P col
4.75
Transcribed Image Text:The editorial Harper modern classics holds the rights to One Hundred Years of Solitude by Gabriel Garcia Marquez. The editorial sells the book both in the US and Colombia. The demand for the book in the US is given by Pus = 36 - 4Qus The demand for the book in Colombia is given by: = 24 - 42col . If MC-4 and Harper cannot price discriminate, who many units should Harper produce in the Colombian market to maximize profit? 0.75 1.75 2.75 3.75 P col 4.75
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