A monopoly has two production plants with cost functions C1 and C2 and x denotes multiplication. C1 equals to 50 plus 0.1x Q1 x Q1 and C2 equals to 30 plus 0.05 x Q2s, where Q2s equals to the square of Q2. The demand it faces is Q. Q equals to 500 minus 10 x P. What is the profit maximizing level of output? Select one: a. Q1 equals to 125; Q2 equals to 62.5. b. None c. Q1 equals to 62.5; Q2 equals to 125. d. Q1 equals to Q2 equals to 62.5. e. Qlequals to Q2 equals to 125

A monopoly has two production plants with cost functions C1 and C2 and x denotes multiplication. C1 equals to 50 plus 0.1x Q1 x Q1 and C2 equals to 30 plus 0.05 x Q2s, where Q2s equals to the square of Q2. The demand it faces is Q. Q equals to 500 minus 10 x P. What is the profit maximizing level of output? Select one: a. Q1 equals to 125; Q2 equals to 62.5. b. None c. Q1 equals to 62.5; Q2 equals to 125. d. Q1 equals to Q2 equals to 62.5. e. Qlequals to Q2 equals to 125

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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