You are the manager of a firm that produces output in two plants. The demand for your firm's product isP= 26 2Q, where Q=Q1+Q₂2. The total costs associated with producing in the two plants areCi(Q₁)=5+1.5Q and C₂ (22) = 10 +22How much output should be produced in plants 1 and 2 in order to maximize profits?Q₁22What is the monopoly price?$What are their maximum profits using both plants? $Suppose the firm has already built plant 1 and the fixed cost of production is sunk. But, plant 2 has not yet beenbuilt yet, the fixed cost of production are not sunk.If they use only plant 1, what is their maximum profit? $Should the firm build the second plant?

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You are the manager of a firm that produces output in two plants. The demand for your firm's product is P=26-2Q, where Q Q1+Q2. The total costs associated with producing in the two plants are Ci(Q1)=5+1.5Q and C₂(Q2) = 10+Q² How much output should be produced in plants 1 and 2 in order to maximize profits? Q₁ 4 Q2 What is the monopoly price?$ What are their maximum profits using both plants? $ Suppose the firm has already built plant 1 and the fixed cost of production is sunk. But, plant 2 has not yet been built yet; the fixed cost of production are not sunk. If they use only plant 1, what is their maximum profit? $

You are the manager of a firm that produces output in two plants. The demand for your firm's product is P=26-2Q, where Q Q1+Q2. The total costs associated with producing in the two plants are Ci(Q1)=5+1.5Q and C₂(Q2) = 10+Q² How much output should be produced in plants 1 and 2 in order to maximize profits? Q₁ 4 Q2 What is the monopoly price?$ What are their maximum profits using both plants? $ Suppose the firm has already built plant 1 and the fixed cost of production is sunk. But, plant 2 has not yet been built yet; the fixed cost of production are not sunk. If they use only plant 1, what is their maximum profit? $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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