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Suppose a monopoly at a price. For political reasons, the company produces in three different sites (factories). The cost structure of installations 1, 2 and
Suppose a monopoly at a price. For political reasons, the company produces in three different sites (factories). The cost structure of installations 1, 2 and 3 is as follows.
C1(Q1) = 15Q12-Q1 C2(Q1, Q2) = 10Q22-Q1Q2 C3(Q3) = 5Q32 respectively. Q1 is the production produced at installation 1, Q2 is the production produced at installation 2 and Q3 is the production produced at installation 3. The company faces the following demand: P=10,000-5Q
Where Q is the total output produced by the firm
Set up the profit maximization problem(s)?
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