1. Consider a monopolist, which has the options of producing an output at two different locations. Suppose that location A is facing a cost of production equal to C = 10 + 5x + 2362, where m is the output level. Location B is facing a cost of production equal to 0* = 12 + 613* + 3(w*)2, where 36* is the output level of location B. The rm tries to satisfy a market by choosing optimal outputs from the two locations in such a way to minimize the cost. (a) What are the marginal costs at these two locations? (b) Suppose that the rm wants to produce a total output of 20. Try to com pare the total cost of production for each of the following three approaches. For each approach, determine the output, a: or 33*, the marginal cost, and cost of production. What is the total cost (0 +0\")? (i) Produce in A only, i.e., ac = 20 and 93* = 0; (ii) Produce in B only, i.e., x = 0 and 22* = 20. (iii) Produce in A and B under the condition that M C = M 0*. (c) Suppose that the rm always tries to make use of the optimal outputs from the two locations. Determine the effective marginal cost function M C"3 in terms of the total output, 3/ = as + 30*. ((1) Make use of the effective marginal cost derived earlier. Suppose that the rm plans to produce an output of 40. What are the optimal outputs from the plants in the two locations? What is the total cost of production