Suppose a monopolist produces in two different plants and sells them in the same Suppose further that the cost and demand functions conform to the following formulas: MC1 = 70 + 2Q1 MC2 = 40 + 4Q2 P = 180 – Q Derive the optimal level of output produced in each plant
Suppose a monopolist produces in two different plants and sells them in the same Suppose further that the cost and demand functions conform to the following formulas: MC1 = 70 + 2Q1 MC2 = 40 + 4Q2 P = 180 – Q Derive the optimal level of output produced in each plant
Chapter8: Monopoly
Section: Chapter Questions
Problem 10SQP
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- Suppose a monopolist produces in two different plants and sells them in the same Suppose further that the cost and demand functions conform to the following formulas:
MC1 = 70 + 2Q1 MC2 = 40 + 4Q2 P = 180 – Q
Derive the optimal level of output produced in each plant
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