Suppose a firm has two plants. The costs are: TC1 = 40 + 12Q1 + Q12...

Question

Question

Suppose a firm has two plants. The costs are: TC1 = 40 + 12Q1 + Q12...

Suppose a firm has two plants. The costs are:

TC₁ = 40 + 12Q₁ + Q₁²

TC₂ = 30 + 10Q₂ + .5Q₂²

The firm’s demand is Pm = 60 - .6Qm.

Find the firm’s

profit-maximizing P* and Q*,
outputs allocated to plants 1 and 2,
overall profit.

business economics

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Answer 1

Answer #1

Lets do this question by (ouonot Couonot duopoly Foo firmi P & 6o - 0.6om 1 Om = Qet az BE bo - 0.0Q,-0.6.Q2 TR-TC profit (IT) Pmx (9,792) - (Tat Ter) = (x1.41 x 31)-(303-637 4 20:45) = u 고 1 283.71 - 724.08 A = $500 (approxy

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Answer 2

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Suppose a firm has two plants. The costs are: TC1 = 40 + 12Q1 + Q12...

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Let market demand for a Cournot duopoly be represented by P=4500-(2Q1+2Q2), while total costs for firm...

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Suppose a firm has two plants. The costs are: TC1 = 40 + 12Q1 + Q12...

Homework Answers

Add Answer to: Suppose a firm has two plants. The costs are: TC1 = 40 + 12Q1 + Q12...

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Suppose a firm has two plants. The costs are: TC1 = 40 + 12Q1 + Q12...