Consider a multiplant monopoly facing demand given by:

q = 480

– 4p The firm operates two plants with total cost functions given by:

(a) State the profit-maximizing rule that determines how much output the monopoly will produce at each plant.

(b) Use the profit-maximizing rule to determine the output produced at each of the two plants and, hence, the total output of the firm.

(c) Show that the profit-maximizing rule for output allocation between the plants is satisfied.

(d) Determine the price charged by the firm. Compute costs at the two plants and, hence, determine profits at the firm.