Question: A monopolist producing only one product has two plants with the following marginal cost functions: MC1 = 20 + 2Q1 and MC2 = 10 +

A monopolist producing only one product has two plants with the following marginal cost functions: MC1 = 20 + 2Q1 and MC2 = 10 + 5Q2, where MC1 and MC2 are the marginal costs in plants 1 and 2, and Q1 and Q2 are the levels of output in each plant, respectively. If the firm is maximizing profits and is producing Q2 = 4, what is Q1?

Step by Step Solution

★★★★★

3.44 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The firm will be maximizing its profit when the marginal costs are eq... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

846-B-E-D-S (2333).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

1. A profit-maximizing firm picks the quantity of output at which ______ equals ______. 2. Arrows up or down: At a firms current level of output, marginal revenue exceeds the marginal cost. The firm...

A firm has access to two production processes with the following marginal cost curves: MC1 = 0.4Q and MC2 = 2 + 0.2Q. a. If it wants to produce 8 units of output, how much should it produce with each...

A monopolist produces a single homogeneous good, which she sells in two distinct markets between which price discrimination is possible. Her total cost function is: TC = 1/3 Q3 7.5Q2 + 370Q + 100....

11.23. A monopolist producing only one product has two plants with the following marginal cost functions: MC1 ! 20 " 2Q1 and MC2 ! 10 " 5Q2, where MC1 and MC2 are the marginal costs in plants 1 and...

1. Consider a market with demand P(Q) = 72 -30. Sup- pose that firms compete by setting prices in a Bertrand duopoly. Answer the following questions (i-iii) for each situation (a-b): i) What price...

acc On January 1st. 2017, X Company bought 80% of the outstanding common shares of the Y Company for $140,000 cash. On that date Y Company had $50,000 of common shares outstanding and $60,000...

Answer all plzz Vinton Auto Insurance is deciding how much money to keep in its checking accounts to cover insurance claims. In the past, the company held some of the premiums it received in...

SOLVE ALL, You have recently been hired as a consultant for Cranberry Distributors. Cranberry Distributors grows and ships cranberries to several international clients with invoices denominated in...

1.Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. All the firms in the industry sell their products at 20 AED. The market demand for this product is...

its maccro i need detailed answers Exercises Question 1 ("Review of Production and Cost Functions, and Prot Mardoiization} Suppose each worker costs $1130 to hire. An example firm has the following...

A wastewater treatment plant uses a single stage rock-media trickling filter for secondary treatment, as illustrated in Figure 9.5(a). The wastewater flow rate is 2000 m3/d with a BOD5 concentration...

In an isosceles triangle, one of the base angles measures 42. The length of each leg is 8.2 cm. a. Find the length of the base. b. Even though you are given one angle and two sides not including the...

Changes to employee compensations or benefits and promotions inconsistent with expectations increase the Blank______ to misappropriate assets. Multiple choice question. incentives and pressures...

Public recognition of superior performance creates positive reinforcement for the team members. When is the best time for a project manager to recognize team members' performance? During the...

Let MUA = z = 10 x and MUB = z = 21 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the...

Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and implicit costs of attending college? Why does the economist classify normal profit as a cost? Is...

Which of the following are short-run and which are long-run adjustments? a. Wendys builds a new restaurant. b. Harley-Davidson Corporation hires 200 more production workers. c. A farmer increases the...

What is the firm's dividend payment in the current year? What is the firm's net income in the current year? Answer format: Number: Round to: 0 decimal places

Hi, please answer these questions it will be appreciated :) Thanks! Can you also please check my answers :) Consider the case of Badger Corp. Badger Corp. has 9% annual coupon bonds that are callable...

3. Suppose a trader buys a call and a put option on a stock with a strike price of $60 and time to maturity of three months (t=0.25). Suppose that the current stock price of the underlying is also...