A firm has two factories for which costs are given by:

Factory 1: C1(Q1) = 1.5Q1^2

Factory 2: C2(Q2) = 0.5Q2^2

The firm faces the following demand curve:

Q = 140-2P, where Q is the total output (i.e. Q = Q1+ Q2)

1. Calculate the values of Q1, Q2, Q and P that maximize profits.
2. Find the maximum profit.
3. Show your answers from part a. graphically. Draw the demand (D), marginal revenue (MR), marginal
4. cost of production in factory 1 (MC1), marginal cost of production in factory 2 (MC2) and total marginal cost of production (MCT). Label your axis, the intercepts and the points of interest (Q1, Q2, Q, MR and P that maximize profits).