A monopolists inverse demand function is -3q your company


A monopolist's inverse demand function is -3Q. Your company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1)= 6(Q1). The marginal cost of producing at facility 2 is MC2(6Q2)= 2Q2.

(a) Provide the equation for the monopolist's marginal revenue function.

(b) Determine the profit maximizing level of output for each facility.

(c) Determine the profit maximizing price

Solution Preview :

Prepared by a verified Expert
Macroeconomics: A monopolists inverse demand function is -3q your company
Reference No:- TGS01546854

Now Priced at $15 (50% Discount)

Recommended (92%)

Rated (4.4/5)