Results for this submission Entered Answer Preview Result 3.9985 3.9985 incorrect The answer above is NOT correct. (3 points) In a monopoly where the marginal cost is $20 and profit maximizing price is $26.6666666666667, the price elasticity of demand is: 3.9985( 0. How much output should be produced in plants 1 and 2 in order to maximize profits? Q1: Q2: What is the optmal price if using both plants? Pa 2 What are their maximum profits using both plants? 3 One Plant Suppose the rm has already built plant 1 and the fixed cost of production is sunk. But, plant 2 has not yet been built yet; the fixed cost of production are not sunk. Suppost that they use only plant 1. (r his means that Q2 : 0,and 02 (0) = 0.) How much output should theygoduce? Q1 =, What would be the optim_a|__price? ' What is their maximum profit if they only use one plant? $ A. A V l Should they build the second plant? E