Question: A multi plant monopoly operates two plants whose total cost schedules are TC 1 = 8.5 + 0.03q 2 1 TC 2 = 5.2 +

A multi plant monopoly operates two plants whose total cost schedules are

TC1 = 8.5 + 0.03q21

TC2 = 5.2 + 0.04q22

If it faces the demand schedule p = 60 0.04q where q = q1+ q2 , how much should it produce

in each plant to maximize profits?

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