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1. A monopolist’s inverse demand function is P = 150 – 3Q. The company produces output...

1. A monopolist’s inverse demand function is P = 150 – 3Q. The company produces output at two facilities.

The marginal cost of producing at facility 1 is:

MC1= 6Q1

The marginal cost of producing at facility 2 is:

MC2= 2Q2

Calculate the profit-maximizing level of output for each facility, and calculate the firm’s profit-maximizing price.

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