Question: A company exports goods to France and Sweden. These markets exhibit different demand schedules and price elasticities. The exporter decides to segment the markets and engage in price discrimination. Using the information in the table below, determine the equilibrium prices and quantities under price discrimination.
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Country
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France I
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Sweden
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Total
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Demand
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Inverse Demand
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p = 800 - 4g.
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p = 480 - 2q
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Marginal Revenue
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Marginal Cost
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MC = 55 + Q
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Price
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Quantity
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