A monopolist's inverse demand function is estimated as P=100-2Q. The company produces output at two facilities; the marginalcost of producing at facility 1 is MC₁(Q)=4Q₁, and the marginal cost of producing at facility 2 is MC₂(0₂)=202.a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q+Q₂ = Q.)MR(Q)=-91-9₂b. Determine the profit-maximizing level of output for each facility.Instructions: Round your response to two decimal places.Output for facility 1:[Outputfor facility 2:[c. Determine the profit-maximizing price.Instructions: Round your response to the nearest penny (two decimal places).

Marginal revenue is the concept of a firm sacrificing the opportunity to sell the current output at…

A monopolist's inverse demand function is estimated as P=100-2Q. The company produces output at two facilities; the margina cost of producing at facility 1 is MC₁(Q)=4Q₁, and the marginal cost of producing at facility 2 is MC₂(0₂) = 202. a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q₁ + Q₂ = Q.) MR(Q)=-9₁-9₂ 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.

A monopolist's inverse demand function is estimated as P=100-2Q. The company produces output at two facilities; the margina cost of producing at facility 1 is MC₁(Q)=4Q₁, and the marginal cost of producing at facility 2 is MC₂(0₂) = 202. a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q₁ + Q₂ = Q.) MR(Q)=-9₁-9₂ 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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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