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

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Monopoly
Section: Chapter Questions
Problem 10SQP
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  1. 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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