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(Solved): Casio Computer Co., Ltd (Casio Japan) has its headquarter in Tokyo, Japan. It has many subsidiaries ...



Casio Computer Co., Ltd (Casio Japan) has its headquarter in Tokyo, Japan. It has many subsidiaries in many regions and countries, including China (Casio China), and the US (Casio America). One of its wrist watch brand is produced in China and exported to the US. Assume that the demand of this brand in the US is p=320-3Q (p, price in dollar, Q is thousands unit per week).The watches have a constant cost of production, at $20 per unit in China. Casio America uses the transfer price set by Casio China as its marginal cost (MC). If Casio Japan asks the two subsidiaries to maximize the total combined profits, what are p, Q, and transfer price?



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