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A drug company has a monopoly on a new patented medicine. The product can be made in either of two plants. The marginal costs of
A drug company has a monopoly on a new patented medicine. The product can be made in either of two plants. The marginal costs of production for the two plants are
MC1=30+2Q1
and
MC2=10+4Q2.
Thefirm's estimate of demand for the product is
P=303Q1+Q2.
How much should the firm plan to produce in eachplant? At what price should it plan to sell theproduct? (Round your responses to two decimalplaces.)
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