11. Pr. 9 on p. 388, P & R. A company has a monopoly on a new drug. The drug can be manufactured in either of two plants. The costs of production for the two plants are MC1 = 20+ 2Q1 and MC2 = 10+5Q2....

Extracted text: 11. Pr. 9 on p. 388, P & R. A company has a monopoly on a new drug. The drug can be manufactured in either of two plants. The costs of production for the two plants are MC1 = 20+ 2Q1 and MC2 = 10+5Q2. The demand for the product is P = 20 – 3(Q1 + Q2). Marginal revenue is 20 – 6(Q1 + Q2). How much should the firm produce in each plant? What price should it charge for the product? Hint: set marginal revenue equal to each marginal cost. That will give you two equations in two unknowns, Q1 and Q2. then solve for Q1 and Q2.