Question

What if TWO firms are acting as a joint-monopolist and face the demand curve from before (Q = 1000 - 4P). Except Firm 1 has cost TC = 50Q and Firm 2 has cost TC = Q^2 (Q-squared). How much does firm 2 produce?

		25
		50
		100
		200
		300

Answer 1

Demand : Q = 1000-4p > P = 1000- 4 Since two firme are there Hence Q = q +92 from I's cost function: Tezso 1 firma's cost function: TC = 92² Kismo as joint acting as jount ponopolist profit function. Hence settin Common sing up T= P.8 - TC - TC2 2 4 1 = (1000 = (1 +22)). (21+22)- 5091-22 for offit par at zo Oq1 & an =0 092 29: loseta) 1000 -2(91792) -50-0 aqi 4 qi+q2 = 400 0 4 an 292 1000, 219,+92) - 292=0 ५ 1000- 8925 2191792) 2 =>

Фи solving eq. O @ 21 = 375 92 =25 Hence firm a should produce 25 quantity Hence option (I) is correct.