Question: Consider a multi-plant monopoly that operates two plants (#1 and #2) but sells its total output Q (= Q₁ + Q₂) in a single market at the same price. The monopoly’s demand is given by

P = 140 – (Q₁ + Q₂) so that MR = 140 – 2(Q₁ + Q₂).

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

TC₁ = Q₁² so that MC₁ = 2Q₁

and

TC₂ = 3Q₂² so that MC₂ = 6Q₂.

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)