A U.S. company and a Japanese company sells an identical product in the Japanese market. The inverse demand equation for this product is P_J = 5 !0.2(Q_JUS + Q_{J J}). Suppose that the best-response functions of the U.S. and Japanese companies are Q_JUS = 5 !0.5Q_{J J} and Q_{J J} = 7.5 !0.5Q_JUS, respectively. Consumer surplus in the Japanese market is:

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The Answer of A U.S. company and a Japanese company sells an identical product in the Japanese market. The inverse demand equation for this product is P_J = 5 !0.2(Q_JUS + Q_{J J}). Suppose that the best-response functions of the U.S. and Japanese companies are Q_JUS = 5 !0.5Q_{J J} and Q_{J J} = 7.5 !0.5Q_JUS, respectively. Consumer surplus in the Japanese market is:

A US Company and a Japanese Company Sells an Identical Product