Could I have help. I’m not understanding how to find the mc’s A firm produces its (single) product in two plants. Plant 1 and Plant 2 have different cost structures.You will find the profit-maximizing total output and the optimal allocation of output between plants.The demand curve faced by the firm is:P = 230 – 4Q where Q = Q1 + Q2The total cost equations for the two plants are:C1 = 10,000 + 0.2Q1?C2 = 20,000 + 0.4Q2?a. Write the marginal cost equations:MC1 =MC2 =b. Set MC1 = MC2 to find a relationship between Q1 and Q2.Q1 =C. Write the marginal revenue equation. Set MR equal to the MC of one plant and substitute from (b)to find profit-maximizing Q1*, Q*, and total output Q*.Q2* =Q* =d. Compute the firm's profit-maximizing price and check that MR = MC; = MC2.P* =MR* = MC* =

MC (marginal cost) is the cost incurred by the firm when an additional unit of a good is produced.…

demand curve faced by the firm is: P = 230 - 4Q where Q = Q1 + Q2 total cost equations for the two plants are: C1 = 10,000 + 0.2Q12 C2 = 20,000 + 0.4Q2? e the marginal cost equations: MC = MC2 = %3D MC = MC2 to find a relationship between Q1 and Q2. Q1 = te the marginal revenue equation. Set MR equal to the MC of one plant and substitute from (b) ind profit-maximizing Q1*, Q2*, and total output Q*.

demand curve faced by the firm is: P = 230 - 4Q where Q = Q1 + Q2 total cost equations for the two plants are: C1 = 10,000 + 0.2Q12 C2 = 20,000 + 0.4Q2? e the marginal cost equations: MC = MC2 = %3D MC = MC2 to find a relationship between Q1 and Q2. Q1 = te the marginal revenue equation. Set MR equal to the MC of one plant and substitute from (b) ind profit-maximizing Q1, Q2, and total output Q*.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Could I have help. I’m not understanding how to find the mc’s

A firm produces its (single) product in two plants. Plant 1 and Plant 2 have different cost structures.
You will find the profit-maximizing total output and the optimal allocation of output between plants.
The demand curve faced by the firm is:
P = 230 – 4Q where Q = Q1 + Q2
The total cost equations for the two plants are:
C1 = 10,000 + 0.2Q1?
C2 = 20,000 + 0.4Q2?
a. Write the marginal cost equations:
MC1 =
MC2 =
b. Set MC1 = MC2 to find a relationship between Q1 and Q2.
Q1 =
C. Write the marginal revenue equation. Set MR equal to the MC of one plant and substitute from (b)
to find profit-maximizing Q1*, Q*, and total output Q*.
Q2* =
Q* =
d. Compute the firm's profit-maximizing price and check that MR = MC; = MC2.
P* =
MR* = MC* =

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