A monopolist's inverse demand function is estimated as P 250-2Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC(Q) = 7Q, and the marginal cost of producing at facility 2 is MC2(Q2) 202- a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q+02 P.) MR(Q) = 250 4 Q1- 4 Q2 b. Determine the profit-maximizing level of output for each facility. Instructions: Round your response to two decimal places. Output for facility 1: 35.000 Output for facility 2: 10 x c. Determine the profit-maximizing price. Instructions: Round your response to the nearest penny (two decimal places). $ 160
A monopolist's inverse demand function is estimated as P 250-2Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC(Q) = 7Q, and the marginal cost of producing at facility 2 is MC2(Q2) 202- a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q+02 P.) MR(Q) = 250 4 Q1- 4 Q2 b. Determine the profit-maximizing level of output for each facility. Instructions: Round your response to two decimal places. Output for facility 1: 35.000 Output for facility 2: 10 x c. Determine the profit-maximizing price. Instructions: Round your response to the nearest penny (two decimal places). $ 160
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 15SQ
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![A monopolist's inverse demand function is estimated as P 250-2Q. The company produces output at two facilities; the marginal
cost of producing at facility 1 is MC(Q) = 7Q, and the marginal cost of producing at facility 2 is MC2(Q2) 202-
a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q+02 P.)
MR(Q) =
250
4
Q1-
4
Q2
b. Determine the profit-maximizing level of output for each facility.
Instructions: Round your response to two decimal places.
Output for facility 1: 35.000
Output for facility 2:
10 x
c. Determine the profit-maximizing price.
Instructions: Round your response to the nearest penny (two decimal places).
$
160](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc273732a-7e4a-4384-ad4e-1ec6c0c5c650%2F98038381-4081-41d2-a5c7-022eca6d206a%2F5lasdn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A monopolist's inverse demand function is estimated as P 250-2Q. The company produces output at two facilities; the marginal
cost of producing at facility 1 is MC(Q) = 7Q, and the marginal cost of producing at facility 2 is MC2(Q2) 202-
a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q+02 P.)
MR(Q) =
250
4
Q1-
4
Q2
b. Determine the profit-maximizing level of output for each facility.
Instructions: Round your response to two decimal places.
Output for facility 1: 35.000
Output for facility 2:
10 x
c. Determine the profit-maximizing price.
Instructions: Round your response to the nearest penny (two decimal places).
$
160
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