3) Suppose a monopolist produces a product in two factories. Demand for the product is given by the following linear demand function: P = 200- Qr where Qr is the quantity sold by the firm and P is the selling price. Total cost functions for the two factories are: TCA 1500 + 55QA + Q²A and TCB = 1200 + 20QB+ 2Q²B. Determine the profit maximizing QA, QB, its selling price, and its profit.

Micro Economics For Today
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ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
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3) Suppose a monopolist produces a product in two factories. Demand for the product is
given by the following linear demand function:
P = 200- Qr where Qr is the quantity sold by the firm and P is the selling price.
Total cost functions for the two factories are:
TCA= 1500 + 55QA + Q²A and TCB = 1200 + 20QB+ 2Q²B.
Determine the profit maximizing QA, QB, its selling price, and its profit.
Transcribed Image Text:3) Suppose a monopolist produces a product in two factories. Demand for the product is given by the following linear demand function: P = 200- Qr where Qr is the quantity sold by the firm and P is the selling price. Total cost functions for the two factories are: TCA= 1500 + 55QA + Q²A and TCB = 1200 + 20QB+ 2Q²B. Determine the profit maximizing QA, QB, its selling price, and its profit.
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