9. Amonopolists inverse demand function is P 100 Q. The company produces output at two

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9. Amonopolist’s inverse demand function is P 100 Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1) 4Q1, and the marginal cost of producing at facility 2 is MC2(Q2) 2Q2.

a. Provide the equation for the monopolist’s marginal revenue function.

(Hint: Recall that Q1 Q2 Q.)

b. Determine the profit-maximizing level of output for each facility.

c. Determine the profit-maximizing price.

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Managerial Economics And Business Strategy

ISBN: 9780073375960

7th Edition

Authors: Michael Baye

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Question Posted: Oct 07, 2024 07:03 AM

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9. Amonopolists inverse demand function is P 100 Q. The company produces output at two

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Managerial Economics And Business Strategy

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