Question

Manager of firm that produces output in two plants. The demand for your firm’s product is...

Manager of firm that produces output in two plants.

The demand for your firm’s product is P = 80 – Q, where Q = Q1 + Q2.

The marginal cost associated with producing in the two plants are MC1 = Q1 and MC2 = 8.

What is the profit maximizing price that the firm should charge?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are the manager of a firm that produces output in two plants. The demand for...
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 − 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. a. How much output should be produced in plant 1 and plant 2 in order to maximize profits? 1 and 1.5 units respectively b. What price should be charged to maximize...
You are the manager of a firm that produces output in two plants. The demand for...
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 120 − 6Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 2Q1 and MC2 = 4Q2. Please explain and show all steps in deriving the answers, thank you! a. How much output should be produced in plant 1 in order to maximize profits? Answer: 6 b. What...
Rexburg Technologies operates two plants. The demand equation for Rexburg's product is P = 38 –...
Rexburg Technologies operates two plants. The demand equation for Rexburg's product is P = 38 – 2.5Q, where Q is in thousands of units. The marginal cost of production in the two plants are MC1 = 2Q1 and MC2 = 4Q2, respectively. To maximize profits, Rexburg should charge a price of: 23.00. $32.50. $8.00. $10.75. None of the options
PROBLEM: FIRM WITH TWO PLANTS, A and B The firm’s Inverse Demand is P=50-Q , where...
PROBLEM: FIRM WITH TWO PLANTS, A and B The firm’s Inverse Demand is P=50-Q , where Q=QA+QB The AVC at Plant A is AVCA =20+QA The AVC at Plant B is AVCB=10+2QB Find the Profit maximizing value of Q Find the Profit maximizing allocation of Q to Plants A and B Find the Price associated with the Profit-maximizing value of Q
Suppose the inverse demand for a monopolist’s product is given by P (Q) = 20 –...
Suppose the inverse demand for a monopolist’s product is given by P (Q) = 20 – 3Q    The monopolist can produce output in two plants. The marginal cost of producing in plant 1 is MC1 = 20 + 2Q1 While the marginal cost of producing in plant 2 is MC2 = 10 + 5Q2 How much output should be produced in each plant? What price should be charged?
Multiplant monopoly problem: Assume the firm has two plants with the following marginal cost functions: MC1...
Multiplant monopoly problem: Assume the firm has two plants with the following marginal cost functions: MC1 = 20 + 2Q1 MC2 = 10 + 5Q2 Assume that the inverse demand curve is P = 500-Q. What is the profit maximizing outputs produced in each plant? Show your work. What is the profit maximizing price? Show your work. What is the maximum profit?
Suppose the inverse demand for a monopolist’s product is given by P (Q) = 20 –...
Suppose the inverse demand for a monopolist’s product is given by P (Q) = 20 – 3Q                                              (Total marks = 5) The monopolist can produce output in two plants. The marginal cost of producing in plant 1 is MC1 = 20 + 2Q1 While the marginal cost of producing in plant 2 is MC2 = 10 + 5Q2 How much output should be produced in each plant? What price should be charged?
A firm has two plants and wishes to maximize profits. The marginal cost curves for the...
A firm has two plants and wishes to maximize profits. The marginal cost curves for the two plants are: MC1 = 2Q1 and MC2 = 3Q2. The demand is P = 100 - .4Q. To maximize profits, how much output should be produced in plant#1 and plant#2, respectively? A.       Q = 40;10. B.       Q = 10; 40. C.       Q = 20; 30. D.       Q = 30; 20. E.        None of the above.
Consider a market with two identical firms. The market demand is P = 26 – 2Q,...
Consider a market with two identical firms. The market demand is P = 26 – 2Q, where Q = q1 + q2. MC1 = MC2 = 2. 1. Solve for output and price with collusion. 2. Solve for the Cournot-Nash equilibrium. 3. Now assume this market has a Stackelberg leader, Firm 1. Solve for the quantity, price, and profit for each firm. 4. Assume there is no product differentiation and the firms follow a Bertrand pricing model. Solve for the...
Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. All...
Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. All the firms in the industry sell their products at 20 AED. The market demand for this product is given by the equation: (Total marks = 5) Q = 25 – 0.25P Furthermore, suppose that a representative firm’s total cost is given by the equation: TC = 50 +4Q + 2Q2 What is the inverse demand function for this market? Calculate the MC function? Calculate...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT