Price 20 10- 0 Quantity Find the optimal profits. a) 60 b) 59 c) 96 d) 62 10 Assume that the monopoly has two plants-plant 1 and plant 2. Cost function is given for plant c;(9₁)=2+4q, ifg, > 0 i.i=1,2. c;(q;) = 0,otherwise 20

Price 20 10- 0 Quantity Find the optimal profits. a) 60 b) 59 c) 96 d) 62 10 Assume that the monopoly has two plants-plant 1 and plant 2. Cost function is given for plant c;(9₁)=2+4q, ifg, > 0 i.i=1,2. c;(q;) = 0,otherwise 20

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

The following figure shows the demand for monopolists
Price
20
10
O
Quantity
a) 60
b) 59
c) 96
d) 62
Assume that the monopoly has two plants-plant 1 and plant 2. Cost function is given for plant
c;(q;)=2+4gifq; > 0
1. i=1,2.
c;(q) = 0,otherwise
Find the optimal profits.
10
20

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