A company operates two plants which manufacture the same item and whose total cost functions are...

A company operates two plants which manufacture the same item and whose total cost functions are C1=6.4+0.04(q1)^2 and C2=7.9+0.02(q2)^2 where q1 and q2 are the quantities produced by each plant. The company is a monopoly. The total quantity demanded, q=q1+q2, is related to the price, p, by p=40−0.02q How much should each plant produce in order to maximize the company's profit? q1=? q2=?

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milcah answered 1 year ago

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