A monopolist sells its products in two countries and resale from customers is not possible. The inverse demand curve for the monopolist is 150 in country 1 and in country 2. Production takes place in country 1, at a constant marginal cost per product of m = 30. Selling its product in country 2 also requires a transportation cost, which is t = 5 per product. Determine for both countries: 1) the monopolist’s optimal price and quantity; 2) the price elasticity of demand at the monopolist’s optimum; and 3) the Lerner‐index.

The stock of grommet corporation, a u. s. company, is publicly traded, with no single shareholder owning more than 5 percent of its outstanding stock. grommet owns 95 percent of the outstanding stock of staple inc., also a u. s. company. staple owns 100 percent of the outstanding stock of clip corporation, a canadian company. grommet and clip each own 50 percent of the outstanding stock of fastener inc., a u. s. company. grommet and staple each own 50 percent of the outstanding stock of binder corporation, a u. s. company. which of these corporations form an affiliated group eligible to file a consolidated tax return?