Question: 1. A monopoly sells its output in two separable markets with the demand schedules p 1 =20 -q 1 /6.P 2 =13.75 -q 2 /8

1. A monopoly sells its output in two separable markets with the demand schedules

p1=20 -q1/6.P2=13.75 -q2/8

If it faces the total cost schedule TC = 74 + 2.26q + 0.01q2where q = q1+ q2, what is the maximum profit it can make?

2. A multiplant monopoly operates two plants whose cost schedules are

TC1=2.4+0.01q1^2 TC2=3.5+0.012q2^2

and sells its total output in a market where p = 32 0.02q.

How much should it produce in each plant to maximize total profits?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Mendina, Incorporated produces an advanced type of coffee maker. Information about the coffee maker is below: Total Variable Cost at 200 units Total Cost per Unit Sales Price Target Profit Volume...

Q:

Hey Kinsly solve this with steps. 0N02 A firm produces two products which are sold in separate markets with the demand schedules p1 =210-0.4q12 p2=491-6q2 Production costs are related and the firm's...

Q:

Exercise one. 1.On the market for widgets, the maximum price anyone is willing to pay is $100 (quantity demanded is zero at a higher price). The equilibrium price is $80 and the equilibrium quantity...

Q:

Everything else constant, the international trade effect indicates that aggregate expenditures in the domestic economy fall when: A) domestic prices fall relative to foreign prices. B) domestic...

Q:

Suppose a monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some...

Q:

Question 2(1 point) If a monopolist sets her output such that marginal revenue, marginal cost and average total cost are equal, economic profit must be: Question 2 options: Zero Negative Positive...

Q:

4. After the pandemic is over, the loss of government revenue due to the economic lockdown and the cost of the worker compensation scheme, made government debt soar and the treasury asks you for...

Q:

Which of the following utility functions are consistent with convex indifference curves and which ones are not? i.(1,2 )=21+52 ii.(1,2 )=(12 ) 1/2 iii.(1,2 )=(1,2), where Min is the minimum of the...

Q:

kindly assit me with the correctl myltiple choice answer Question 6 Not yet answered Marked out of 10 Participants in the Prisoner's Dilemma are O not allowed to cooperate irrational O allowed to...

Q:

A local public transit (monopoly) sells monthly bus passes to adults and students. The demand elasticity for bus passes by adults is -0.25, whereas demand elasticity by students is -0.50. Their...

Q:

4 Files 12:47 PM Mon May 16 Insert Draw Layout Review View Unit 3Microec0nomics Name: ELASTICITY Use the space below to take notes during class. Elastic: Unit Elastic: Inelastic: Perfect...

Q:

Let X 1 , . . ., X n be a random sample from a population with density function Show that is sufficient for . -,-2S1 0 (minx, maxx ) min X max X

Q:

1. Design a non - stick synchronous circuit with dynamic T triggers (diagrams operation is described in the Carnot (Veitch) diagram of other states): 1.1 Draw a diagram of the change of states. 1.2...

Q:

Which element is crucial when defining the strategic direction for an organization? Establishing a vague mission statement Setting specific strategic goals aligned with the organization s vision...

Q:

Jasper contacts his insurance agent, Dasha, to discuss his retirement plan. Jasper has no employer pension and will be relying heavily on government retirement benefit programs. From his estimates,...

Q:

Maurice, age 55, will be getting a full pension at age 65. Combinedwith his expected government benefits, Maurice expects that the pensions will provide adequate cash flow to meet his goals. Maurice...

Q:

Suppose that ABC Company operates in a tiny, rural and remote community, within Newfoundland Labrador, in a region with a weak economy, and is the biggest local employer. ABC Company employs 150...

Q:

A friend, Mocha, has decided to start a coffee shop, Mocha Specialty Coffees, Inc., and has asked your help (you are getting an MBA) in developing projected financial statements for the first five...

Q:

Discuss the importance of Efficiency and Effectiveness concepts for a business

Q:

10. Try to remember the last communication you entered into. How many times did you fill in information that the other person did not convey? How many times did you speak before the other person...

Q:

6. Think of a situation where you noticed that the other person or people did not like or understand your behaviour. Examine your own intentions behind the behaviour.

Q:

2. In this chapter, the reader should reflect on the following concepts: historical reason, goal orientation, core values and top performance.