Question
Market demand is P = 64 - (Q/7). A multiplant monopolist operates three plants, with marginal cost functions: MC 1 (Q 1 )= 4Q 1
Market demand is P = 64 - (Q/7). A multiplant monopolist operates three plants, with marginal cost functions:
MC1(Q1)= 4Q1
MC2(Q2)= 2+2Q2
MC3(Q3)= 6+Q3
a) Find the monopolist's profit-maximizing price and output at each plant.
b) How would your answer to part (a) change if MC2 (Q2) = 4?
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
