A Monopolist Owns Two Plants in Which to Produce a Product

question 25

Multiple Choice

A monopolist owns two plants in which to produce a product which has inverse demand $P =$ $( 770 / 3 ) - 3 Q$ . The monopolist has marginal cost curves of $M C _ { 1 } = 20 + 3 Q _ { 1 }$ and $M C _ { 2 } = 10 + 6 Q _ { 2 }$ in the two plants, respectively. Which of the following represents the optimal outputs in the two plants, $Q _ { 1 }$ and $Q _ { 2 }$ and the market price?

• A) \(Q _ { 1 } = 170 / 9 ; Q _ { 2 } = 100 / 9 ; P = 500 / 3\).
• B) \(Q _ { 1 } = 100 / 9 ; Q _ { 2 } = 170 / 9 ; P = 500 / 3\).
• C) \(Q _ { 1 } = 500 / 3 ; Q _ { 2 } = 170 / 9 ; P = 100 / 9\).
• D) \(Q _ { 1 } = 500 / 3 ; Q _ { 2 } = 100 / 9 ; P = 170 / 9\).

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Definitions:

Sociological Research

A systematic process to understand social phenomena, involving quantitative and qualitative methods to collect and analyze data.

Not Randomly Selected

Refers to a method of sampling where elements are chosen based on certain criteria instead of random selection, which can lead to biased results.

Generalization

Applying information obtained on a small sample of units (such as people) to a larger population of the units.

Sample

A selection from a larger group meant to represent the whole, chosen for analysis or inquiry to gather data about the broader population.