Question

**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?**

Answer #1

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 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...

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

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

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 – 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?

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 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?

#1The manager of the party is considering whether to use uniform
pricing or two-part-pricing . Your willingness to pay for rides for
the party is P = 48 – (0.75)×Q, where P is the ticket price per
ride and Q is the number of rides. The amusement park has a
marginal cost of $5 for each additional rise. Its fixed cost for
handling the party is $20. Show all your work in an excel
spreadsheet.
a) Create a spreadsheet with...

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.

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