Take the following demand and cost functions for a single plant operation:TR = $860Q - $0.04Q^2MR = 860 -0.08QTC =$80,000 + $20Q + $0.02Q^2MC = 20+ 0.04QMinimum AC =-80,000Q^(-2)+0.02 =0a) Calculate the profit maximising level of output and price for one plant as well as the level of profit (show workings). b) Find the profit maximising level of output if the business were to switch to a multi-plant operation taking advantage of minimum average cost. How many plants would this multi-plant operation involve? Show all workings. c) Find the level of profit for the multi-plant operation (show workings). d) Should this operation operate as a multi-plant operation or a single plant operation (why or why not?)

Take the following demand and cost functions for a single plant operation: TR = $8600 - $0.0402 MR = 860 - 0.08Q TC = $80,000 + $20Q + $0.02Q2 MC = 20+ 0.040 Minimum AC = -80,0000-2 + 0.02 = 0 a) Calculate the profit maximising level of output and price for one plant as well as the level of profit (show workings). b) Find the profit maximising level of output if the business were to switch to a multi-plant operation taking advantage of minimum average cost. How many plants would this multi- plant operation involve? Show all workings. c) Find the level of profit for the multi-plant operation (show workings). d) Should this operation operate as a multi-plant operation or a single plant operation (why or why not?)