Statistics Solutions

(Steps Shown) Consider a multi-plant monopoly that operates two plants (#1 and #2) but sells its total output Q (= Q 1 + Q 2) in a single market at the same price.

Question: Consider a multi-plant monopoly that operates two plants (#1 and #2) but sells its total output Q (= Q 1 + Q 2 ) in a single market at the same price. The monopoly’s demand is given by

P = 140 – (Q 1 + Q 2 ) so that MR = 140 – 2(Q 1 + Q 2 ).

The total costs for the monopoly’s two plants are given by

TC 1 = Q 1 2 so that MC 1 = 2Q 1

and

TC 2 = 3Q 2 2 so that MC 2 = 6Q 2 .

Determine (no diagrams are required) this monopoly’s equilibrium total output, the output that should be produced in each plant, price, and profit. (5 points)

Price: $2.99
Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document


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