A drug company has a monopoly on a new patented medicine. The product can be made in

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A drug company has a monopoly on a new patented medicine. The product can be made in either of two plants. The costs of production for the two plants are MC1  20  2Q1 and MC2  10  5Q2. The firm’s estimate of demand for the product is P  20  3(Q1  Q2). How much should the firm plan to produce in each plant? At what price should it plan to sell the product?
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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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