The principal minors are H₁ =absin (a)absin (a)8di8diffTherefore the Hessian is positive definite88RRΩΩandmthe solution is a maximum.A2Pand H₂= Suppose a monopoly supplied its market from two plants, with cost functions:C₁ = 18 q₁ and C₂ (92) = 392.The monopolist faces a linear demand p = 238 - 5 Q, where Q is the amount sold in this market, which is the total amount produced by both plants.Find the quantities produced at each plant to maximize the monopolist's profit.91NumberNumberNow check the second order conditions:The Hessian isbsin (a)daf8aΩBA₂

A monopolist refers to a firm that is the only seller in the market and whose product has no close…

Suppose a monopoly supplied its market from two plants, with cost functions: C₁-18 q₁ and C₂ (92) — 392. The monopolist faces a linear demand p = 238 - 5 Q, where is the amount sold in this market, which is the total amount produced by both plants. Find the quantities produced at each plant to maximize the monopolist's profit. 91 · 92 Number Number Now check the second order conditions:

Suppose a monopoly supplied its market from two plants, with cost functions: C₁-18 q₁ and C₂ (92) — 392. The monopolist faces a linear demand p = 238 - 5 Q, where is the amount sold in this market, which is the total amount produced by both plants. Find the quantities produced at each plant to maximize the monopolist's profit. 91 · 92 Number Number Now check the second order conditions:

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.9P

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