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Question 1 [7 pts] The multi-plant monopolist TU faces demand, Q = 84 - 2P Each plant has total cost equal to TC = iQ?,
Posted: Fri Apr 29, 2022 11:34 am
by answerhappygod
- Question 1 7 Pts The Multi Plant Monopolist Tu Faces Demand Q 84 2p Each Plant Has Total Cost Equal To Tc Iq 1 (38.24 KiB) Viewed 23 times
- Question 1 7 Pts The Multi Plant Monopolist Tu Faces Demand Q 84 2p Each Plant Has Total Cost Equal To Tc Iq 2 (38.24 KiB) Viewed 23 times
Question 1 [7 pts] The multi-plant monopolist TU faces demand, Q = 84 - 2P Each plant has total cost equal to TC = iQ?, where i represents the plant 1 and 2. (TC = Q and TC2 = 202.) 1.1 (3 pts) If the TU owned only plant, what is the total number of units the TU should produce to maximize profit. Find the price and profit for this market. No need to check for the second order condition. 1.2 (3 pts) Suppose that the TU owns all plant 1 and 2. What is the total number of units the TV should produce at each plant to maximize profit . Find the price and profit for this market. Also check for the second order condition. 1.3 (1 pts) Does the TU make more profit in 1.2 than 1.1? Explain.