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Solve in details You are the manager of a firm that produces output in two plants. The demand for your firm's product is P =
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You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 150, where Q = Q, + Q2. The total costs associated with producing in the two plants are Ci(Q1) = 20 + 0; and C2(02) = 10 + 0; How much output should be produced in plants 1 and 2 in order to maximize profits? Q1 = What is the monopoly price?$ What are their maximum profits using both plants? $ Suppose the firm 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. If they only plant 1, what is their maximum profit? $ Should the firm build the second plantStep by Step Solution
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