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Q. 1. BMW has MC=$20,000 and FC=$10billion. Demand for markets in Europe (e) and US (u) are Qe=4,000,000-100Pe and Qu=1,000,000-20Pu. Prices and Costs are in thousands. BMW can restrict US sales to authorized BMW dealers only.
a. What should be quantity and price in each market?
b. What should be total profit?
c. If y charge same price in each market, what should be quantity sold in each market, equilibrium price and total profit?
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