Consider a monopoly with inverse demand function p = 24 - y and cost function c( y) = 5...

Consider a monopoly with inverse demand function  p = 24 -  y and cost function  c( y) = 5 y 2 + 4:
i) Find the profit maximizing output and price, and calculate the monopolist's profits.
ii) Now consider the case in which the monopolist has now another plant with the cost structure  c 2( y 2) = 10 y 2. How much will the monopolist produce in each plant, what is the price, and the total profits of the monopoly?
iii) Now suppose there is a technological change in the first plant and it has the following cost function:  c 1 ( y 1) = 2 y 1. How much will the monopolist produce in each plant and what is the price?

To be solved step by step

I have only 20 mins. for this to be answered please help

Expert Solution

Rahul Sunny answered 2 years ago

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