4. A monopolist produces exactly the same product at three plants with respective costs C = Q1 + Qỉ C2 = 3Q2 C3 = 3Q3 – Q3 Ci If the price for the product is P; = 40 – Qi Rị = P;Qi i = 1,2,3 → TR = E{ R{ Find the critical value (Qj, Q2, Q3) of the firm's profit ( = TR – TC) and use the Hessian to determine if it is a relative minimum or maximum.
4. A monopolist produces exactly the same product at three plants with respective costs C = Q1 + Qỉ C2 = 3Q2 C3 = 3Q3 – Q3 Ci If the price for the product is P; = 40 – Qi Rị = P;Qi i = 1,2,3 → TR = E{ R{ Find the critical value (Qj, Q2, Q3) of the firm's profit ( = TR – TC) and use the Hessian to determine if it is a relative minimum or maximum.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 19SQ
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