Question: A monopolist s inverse demand function is P = 1 0 0 Q . The company produces output at two facilities; the marginal cost of
A monopolists inverse demand function is P Q The company produces output at two
facilities; the marginal cost of producing at facility is M CQQ and the marginal cost of
producing at facility is M CQQ
a Provide the equation for the monopolists marginal revenue function. Hint: Recall that Q
Q Q
b Determine the profitmaximizing level of output for each facility.
c Determine the profitmaximizing price
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