Market demand is P = 64 - (Q/7). A multiplant monopolist operates three plants, with marginal cost

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Market demand is P = 64 - (Q/7). A multiplant monopolist operates three plants, with marginal cost functions:

a) Find the monopolist's profit-maximizing price and output at each plant.
b) How would your answer to part (a) change if MC2 (Q2) = 4?

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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Question Posted: Mar 17, 2016 05:01 AM

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Market demand is P = 64 - (Q/7). A multiplant monopolist operates three plants, with marginal cost

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MC202 202

Step by Step Answer:

a Equating the marginal costs at MC T we have Q Q 1 Q 2 Q 3 025 MC T 05 MC T 1 M...View the full answer

Microeconomics

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