Problem 08-09 (algo)

A monopolist's inverse demand function is estimated asP= 250 2Q. The company produces output at two facilities; the marginal cost of producing at facility 1 isMC₁(Q₁) = 2Q₁, and the marginal cost of producing at facility 2 isMC₂(Q₂) = 7Q₂.

a. Provide the equation for the monopolist's marginal revenue function. (Hint:Recall thatQ₁+Q₂=Q.)

MR(Q) =____________Q₁______Q₂

b. Determine the profit-maximizing level of output for each facility.

Instructions:Round your response to two decimal places.

Output for facility 1:__________

Output for facility 2:_________

c. Determine the profit-maximizing price.

Instructions:Round your response to the nearest penny (two decimal places).

$___________