A Monopoly Has Two Production Plants with Cost Functions C₁

question 70

Multiple Choice

A monopoly has two production plants with cost functions C₁ = 40 + 0.2 Q₁² and C₂ = 50 + 0.1 Q₂².The demand it faces is Q = 480 − 5P.What is the profit-maximizing level of output?

• A) Q₁ = 50; Q₂ = 100
• B) Q₁ = 60; Q₂ = 120.
• C) Q₁ = Q₂ = 75
• D) Q₁ = Q₂ = 100

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Definitions:

Self-Management

The ability to control one's own actions, manage time and resources effectively, and make independent decisions.

Social Context

The environment of people, cultures, and institutions in which individuals live and operate, which significantly influences their behaviors, beliefs, and interactions.

Resource Inputs

The materials, labor, and capital that are utilized in the production process of goods or services.

Organizational Outputs

The results, products, or services that are produced by an organization in fulfilment of its goals and objectives.