A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is
pa=90−Qa,
and the Japanese inverse demand function is
pj=80−2Qj,
where both prices,
pa
and
pj,
are measured in dollars. The firm's marginal cost of production is m =
$25
in both countries. If the firm can prevent resales, what price will it charge in both markets? (Hint:
The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.)
Part 2
The equilibrium price in Japan is
$enter your response here.
(round your answer to the nearest penny)