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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*.

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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* =
Transcribed Image Text: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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