The following figure shows the demand for monopolists Price 20 10- 0 Quantity a) 60 b) 59 c) 96 d) 62 Assume that the monopoly has two plants-plant 1 and plant 2. Cost function is given for plant c₁(q) =2+4qifq; > 0 1. i=1,2. c,(q) = 0,otherwise Find the optimal profits. 10 20

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 14SQ
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The following figure shows the demand for monopolists
Price
20
-10
0
i. i=1,2.
VC
Quantity
Assume that the monopoly has two plants-plant 1 and plant 2. Cost function is given for plant
c;(q;)=2+4qifq; > 0
a) 60
b) 59
c) 96
d) 62
c;(q) = 0,otherwise
Find the optimal profits.
10
20
Transcribed Image Text:The following figure shows the demand for monopolists Price 20 -10 0 i. i=1,2. VC Quantity Assume that the monopoly has two plants-plant 1 and plant 2. Cost function is given for plant c;(q;)=2+4qifq; > 0 a) 60 b) 59 c) 96 d) 62 c;(q) = 0,otherwise Find the optimal profits. 10 20
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