A monopolist produces the same product at two factories. The cost functions for each factory are as
Question:
A monopolist produces the same product at two factories. The cost functions for each
factory are as follows:
The demand function for the good is
P = 100 − 2Q
where Q = Q1 + Q2. Find the values of Q1 and Q2 which maximise profit.
Transcribed Image Text:
TC, = 8Q, and TC, = Q
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (12 reviews)
TRPQ 10020Q10002010092a 9 1000100020204902 Hence TRTC1000 10002020490 89 ...View the full answer
Answered By
Dorcas Juliet
I am a proficient tutor and writer with over 4 years experience, I can deliver A+ works in all fields related to business and economics subject. Kindly hire me for excellent papers
4.70+
10+ Reviews
51+ Question Solved
Related Book For
Question Posted:
Students also viewed these Mathematics questions
-
A firm has two plants, X and Y. suppose that the cost of producing x units at plant X is x2+1200 Dollars and the cost of producing y units of the same product at plant Y is given by 3y2+800 dollars....
-
The Philbrick Company has two plants on opposite sides of the United States. Each of these plants produces the same two products and then sells them to wholesalers within its half of the country. The...
-
The Audiofile Company produces boomboxes. However, management has decided to subcontract out the production of the speakers needed for the boomboxes. Three vendors are available to supply the...
-
Modify BST to add a method size() that returns the number of key-value pairs in the symbol table. Use the approach of storing within each Node the number of nodes in the subtree rooted there.
-
The average air pressure on Mars is 600 Pa. For the composition described in Problem 11.18, determine the partial pressure of each constituent.
-
John R. and Anne L. Miller are married and live at 13071 Sterling Drive, Aitkin, MN 56431. John is a self-employed insurance claims adjuster (business activity code 524290), and Anne is the dietitian...
-
Which of the following events would be an extraordinary loss? a. Loss due to an earthquake b. Loss on the sale of equipment c. Loss on discontinued operations d. All of the above are extraordinary...
-
Mason Co. issued $60,000,000 of five-year, 14% bonds with interest payable semiannually, at an effective interest rate of 10%. Determine the present value of the bonds payable, using the present...
-
$25,000 $5,000 5 years 17-7 From the following facts, prepare a depreciation schedule using the declining-balance method (twice the straight-line rate): LU 17-3(2) Given Chevrolet Colorado Residual...
-
Grano owns a forty-room motel on Highway 100. Tanner is interested in purchasing the motel. During the course of negotiations, Grano tells Tanner that the motel netted $30,000 during the previous...
-
An individuals utility function is given by where x 1 is the amount of leisure measured in hours per week and x 2 is earned income measured in dollars per week. Find the values of x 1 and x 2 which...
-
A monopolist sells its product in two isolated markets with demand functions P1 = 32 Q 1 and P 2 = 40 2Q 2 The total cost function is TC = 4(Q 1 + Q 2 ). (a) Show that the profit function is given...
-
Dayton Mining Company purchased land containing an estimated 15 million tons of ore at a cost of $6,000,000. The land without the ore is estimated to be worth $900,000. The company expects to operate...
-
What benefits does simulation bring to the analysis of venture uncertainty?
-
What, besides providing financial capital, are the advantages to a new venture of attracting angel group financing? Venture capital financing?
-
Why is simulation particularly suited to forecasting revenue of new ventures?
-
When is vendor-provided credit (trade credit) an important form of financing for new ventures and how do the credit terms affect the cost of using trade credit?
-
How might you determine the number of scenarios needed to analyze a new ventures uncertainty? Explain how you might estimate reasonable probabilities for each scenario.
-
The two shafts are made of A-36 steel. Each has a diameter of 25 mm and they are connected using the gears fixed to their ends. Their other ends are attached to fixed supports at A and B. They are...
-
1. As a general strategy, would you recommend that Carl take an aggressive approach to capacity expansion or more of a wait-and-see approach? 2. Should Carl go with the option for one facility that...
-
If f(x) = 5x + 1, find and simplify each of the following in Problem. f(f(0))
-
If f(x) = 5x + 1, find and simplify each of the following in Problem. f(f(0))
-
If f(x) = 5x + 1, find and simplify each of the following in Problem. f(2x - 1)
-
KnightWashing is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The cost formula for its electricity cost is $1,200 per month plus $0.15 per car washed....
-
Let A and B be 4 x 4 matrices with det(A) = 4 and det(B) = -2. Find the value of (a) det ((3A)(2B)-) (b) det (adj(A)) (c) det (ABAT)
-
How is the tax rate of the patent payable determined? How is business volume determined? In order to benefit from the discount on the license fee, when does the payment have to be made? What does...
Study smarter with the SolutionInn App