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ECO - Suppose the inverse demand for a monopolist's product

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Question;Suppose the inverse demand for a monopolist's product is given by, P(Q)=10-0.5QThe monopolist can produce output in two plants. The marginal cost of producing in plant one is MC(subscript 1) = Q(subscript 1). The marginal cost of producing in plant two is MC(subscript 2)= 2Q(subscript 2)a) How much output should be produced in each plant to maximize profit?b) what price should the firm charge for its product to maximize profits?

 

Paper#56240 | Written in 18-Jul-2015

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