A drug company has a monopoly

A drug company has a monopoly on a new patented medicine. The product can be made in either of two plants. The marginal costs of production for the two plants are

MC 1 equals 30 plus 2 Upper Q 1

MC1=30+2Q1

and

MC 2 equals 10 plus 4 Upper Q 2

MC2=10+4Q2.

The? firm’s estimate of demand for the product is

Upper P equals 30 minus 3 left parenthesis Upper Q 1 plus Upper Q 2 right parenthesis

P=30?3Q1+Q2.

How much should the firm plan to produce in each? plant? At what price should it plan to sell the? product??(Round your responses to two decimal? places.)

The firm should produce

units in plant 1 andin plant 2. To maximize? profits, it should charge a price of$ ?per unit.

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A drug company has a monopoly

A drug company has a monopoly on a new patented medicine. The product can be made in either of two plants. The marginal costs of production for the two plants are

MC 1 equals 30 plus 2 Upper Q 1

MC1=30+2Q1

and

MC 2 equals 10 plus 4 Upper Q 2

MC2=10+4Q2.

The? firm’s estimate of demand for the product is

Upper P equals 30 minus 3 left parenthesis Upper Q 1 plus Upper Q 2 right parenthesis

P=30?3Q1+Q2.

How much should the firm plan to produce in each? plant? At what price should it plan to sell the? product??(Round your responses to two decimal? places.)

The firm should produce

units in plant 1 andin plant 2. To maximize? profits, it should charge a price of$ ?per unit.

Leave a Reply

Your email address will not be published. Required fields are marked *