A company operates two plants which manufacture the same item and whose total cost functions are...
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A company operates two plants which manufacture the same itemand whose total cost functions are C1=6.4+0.04(q1)^2 andC2=7.9+0.02(q2)^2 where q1 and q2 are the quantities produced byeach plant. The company is a monopoly. The total quantity demanded,q=q1+q2, is related to the price, p, by p=40−0.02q How much shouldeach plant produce in order to maximize the company's profit? q1=?q2=?
A company operates two plants which manufacture the same itemand whose total cost functions are C1=6.4+0.04(q1)^2 andC2=7.9+0.02(q2)^2 where q1 and q2 are the quantities produced byeach plant. The company is a monopoly. The total quantity demanded,q=q1+q2, is related to the price, p, by p=40−0.02q How much shouldeach plant produce in order to maximize the company's profit? q1=?q2=?
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