Please explain why this answer is correct. A monopoly has two production plants with cost functions C₁ = 50+ 0.1Q₁² and C₂ = 30 + 0.05Q₂². The demand it faces is Q = 500 - 10P. What is the profit-maximizing price?Multiple Choice$18.75 per unit$6.25 per unit$31.25 per unit$12.5 per unit

The profit-maximizing point lies on the downward-sloping part of an isoprofit curve, where price…

A monopoly has two production plants with cost functions C₁ =50+ 0.1Q₁² and C₂=30+ 0.05Q2². The demand it faces is Q = 500-10P. What is the profit-maximizing price? Multiple Choice $18.75 per unit $6.25 per unit $31.25 per unit $12.5 per unit

A monopoly has two production plants with cost functions C₁ =50+ 0.1Q₁² and C₂=30+ 0.05Q2². The demand it faces is Q = 500-10P. What is the profit-maximizing price? Multiple Choice $18.75 per unit $6.25 per unit $31.25 per unit $12.5 per unit

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Please explain why this answer is correct.

A monopoly has two production plants with cost functions C₁ = 50+ 0.1Q₁² and C₂ = 30 + 0.05Q₂². The demand it faces is Q = 500 - 10P. What is the profit-maximizing price?
Multiple Choice
$18.75 per unit
$6.25 per unit
$31.25 per unit
$12.5 per unit

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