3. (40 marks) The popular movie series Fantastic Beast and Where to Find Them is coming out. Warner Brothers investigate

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3. (40 marks) The popular movie series Fantastic Beast and Where
to Find Them is coming out. Warner Brothers investigate the movie
market and finds out the market demand for this movie in country A
is denoted as follows:
PA = 12.5 −
0.005QA
and the market demand curve in country
B is:
PB = 20 −
0.01QB
Suppose Warner Brothers is the only
movie manufacturing company operating in country A and B. Its
marginal cost is constant where MC=$2, and there is no fixed
cost.
Marginal revenue in country A is
MRA = 12.5 − 0.01QA, and marginal
revenue in country B is MRB = 20 −
0.02QB.
P = 20 – Q/100 if Q
£ 750
P = 15 – Q/300 if Q
> 750
So we have the following functions for
the marginal revenue:
MR = 20 – Q/50 if Q
£ 750
MR = 15 − Q/150 if Q > 750