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Suppose you are a monopolist operating two plants

24 / 01 / 2019 Assignments

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Suppose you are a monopolist operating two plants

Suppose you are a monopolist operating two plants at different locations. Both plants produce thesame product; Q1 is the quantity produced at plant 1, and Q2 is the quantity produced at plant 2.You face the following inverse demand function: P = 500 – 2Q, where Q = Q1 + Q2. The costfunctions for the two plants area.b.c.d.What are your marginal revenue and marginal cost functions?To maximize profits, how much should you produce at plant 1? At plant 2?What is the price that maximizes profits?What are the maximum profits?


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