Arms merchant often sells weapons to both sides of conflict

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During the war, the same arms merchant often sells weapons to both sides of the conflict. In this situation, a different price could be offered to each side because there is no danger of resale. Suppose a US arms merchant has a monopoly of a special air-to-sea missiles and is willing to sell them to both India and Pakistan. India's demand for missiles is P = 400 - 0.5x and Pakistan's is P = 300 - y, where P is in millions of dollars. The marginal cost of missiles is MC = Q, where Q = x + y. How many missiles will be sold to each country and what price will be charged to each country? Show your work.

Reference no: EM131167336

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