$3.00 Question 3
Suppose you are a monopolist who faces a domestic demand curve given by Q= 1,000-2P. Your domestic cost of production involves domestic costs per unit of 300 and a foreign cost per unit produced of 150. If the real exchange rate is 1.1, what would be the price you would charge and the quanitity you would sell? How do these variables change when the real exchange rate increases by 10%?
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- Posted on Jun. 01, 2012 at 07:36:02AM
Answer to Question 3 in Excel.xlsx (10K)
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- Posted on Jun. 01, 2012 at 09:43:07AM