1 answer

1. (10) Company XYZ has a monopoly on a new product. The product can be manufactured...

Question:

1. (10) Company XYZ has a monopoly on a new product. The product can be manufactured in either of two factories. The costs of
1. (10) Company XYZ has a monopoly on a new product. The product can be manufactured in either of two factories. The costs of production for the two factories are MC1 = 10 + Qi and MC2 = 3 + 3Q2. The firm's demand for the product is P= 10 – 2(Q1 + Q2). How much should the firm produce in each factory? At what price should it sell the product?

Answers

Hero; p = 10- 20 - 202 For firmi Mc, = d (TC) do = d (1000) di Mc 2 TR,= (10-20,-202) a loo, - 20, 2- 20₂0, = MR = (TR) del INow; MC2 = MR2 lo-402-20 = 3 120, 140, 7. Sohling and Cug for and 02 elimination method . ☺ Now egration in by 4Q + 202 = 9 2

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