Question
A monopoly has two production plants with cost functions C1= 50 + 0.1Q12and C2= 30 + 0.05Q22. The demand it faces is P = 50
A monopoly has two production plants with cost functions C1= 50 + 0.1Q12and C2= 30 + 0.05Q22. The demand it faces is P = 50 0.1Q. What is the condition for profit maximization?
0.2Q1+ 0.1Q2= 50 0.2(Q1+ Q2).
0.2Q1= 0.1Q2= 50 0.1Q1+ 0.1Q2.
0.2Q1= 0.1Q2= 50 0.2(Q1+ Q2).
0.2Q1= 0.1Q2= 50 0.1(Q1+ Q2).
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
