3. The inverse market demand is P=100 - 2/3Q. The firms have cost functions TC1 = 15 + 3q1+ q1 TC2 = 20 + q2 + 2q2 Q = q1 +q2

a. Assume there is a multiplant monopoly and TC1 and TC2 represents the cost of production in each plant. How much quantity should each plant produce?

b. Find the market price.

c. Assume there is a multiplant monopoly. Would it make sense for the firm to close one of the plants?

d. Does your answer change if TC2 = 20 + q2 + 2q2 changes to TC2 = 1000 + q2 + 2q ?

e. Explain your answer from the prior question- did your production change or remain the same?