Question
A firm operates two plants whose MC schedules are MC 1 =2+0.2Q 1 , MC 2 = 6+0.04Q 2. It is a monopoly seller in
A firm operates two plants whose MC schedules are MC1=2+0.2Q1, MC2= 6+0.04Q2. It is a monopoly seller in a market where the demand schedule is P=66-0.1Q, where Q is the aggregate output and all costs and prices are measured in USD. How much should the firm produce in each plant and at what price should total output be sold if it wishes to maximize profit?
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Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
