ECON 212 Quiz: ECON 212quizquiz5d.w04
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ECON 212 Full Course Notes
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The first plant (call it plant 1) has total cost, 2 and the second plant (call it plant 2) has total cost, To find the profit-maximizing price, set mr mc= At this quantity, the monopolist will charge a price. 09: [2. 5 marks] suppose that monopolist owns both, plants 1 and 2. Determine the optimal price this monopolist should charge, the total number of units the monopolist will supply, and the number of units the monopolist should produce at each plant. Also calculate the profit of the multi-plant monopolist. The monopolist will produce so that the marginal costs are equal at both plants. To begin, find the multi-plant marginal cost curve, This is found by horizontally summing the marginal cost curves for the individual plants. The second equation above is obtained from the marginal cost curves for the individual plants. Because the marginal costs will be equal at each plant, we call this.
