Refer to the above table. Suppose both governments offer their ...

[tsand2]

Refer to the above table. Suppose both governments offer their respective company a 10 million subsidy.
 
  What will be an ideal response?

Question 2

Refer to above figure. The monopolist can export as much as it likes of its steel at the world price of 5/ton. How much steel will the monopolist sell, and at what price?
 
  What will be an ideal response?

[bubulittle310@msn.cn]

Answer to Question 1

Both companies would enter the market, since each knows that regardless of the other's decision, it will make some profit here.

Answer to Question 2

It would sell 10 million tons at 5/ton.