A monopolist facing a market demand Q = 240 – 2p has the total cost function...

A monopolist facing a market demand Q = 240 – 2p has the total cost function TC(q) = q².

1. What is the monopolist’s profit maximizing quantity and price? How many units are produced in each plant?

Now the government notices that the monopolist is actually composed of two production plants, the first plant has a total cost function TC1(q) = 2q^2+ 16q

2. Derive the marginal cost of the second plant, MC2(q).

Expert Solution

Rahul Sunny answered 2 years ago

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