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
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