9. A firm makes the same good at two different plants. They have differing costs. The cost of producing in the first plant is C = 2q% + 3 The cost of producing in the second plant is C2 = 4q2 + 9 The...


Q9



Hi can you please help me to solve Q 9 both c and d I wanna check I have done it correctly, thank you


9. A firm makes the same good at two different plants. They have<br>differing costs.<br>The cost of producing in the first plant is C = 2q% + 3<br>The cost of producing in the second plant is C2 = 4q2 + 9<br>The inverse demand functions for this good is as follows:<br>P = 60 – 2Q where Q is total output.<br>The output from the first plant is q1, and the output from the<br>second plant is q2. This means that Q = q1 +q2•<br>Find an expression for the total revenue of the output of each<br>plant.<br>(a)<br>(a)<br>Find an expression for total profit in terms of the output of<br>each plant (q1 and q2).<br>(b)<br>Find the output of each plant which maximise the firm's<br>profit. Check that it is a maximum.<br>(d)<br>What are the output levels of each plant if the firm<br>maximises Total Revenue?<br>

Extracted text: 9. A firm makes the same good at two different plants. They have differing costs. The cost of producing in the first plant is C = 2q% + 3 The cost of producing in the second plant is C2 = 4q2 + 9 The inverse demand functions for this good is as follows: P = 60 – 2Q where Q is total output. The output from the first plant is q1, and the output from the second plant is q2. This means that Q = q1 +q2• Find an expression for the total revenue of the output of each plant. (a) (a) Find an expression for total profit in terms of the output of each plant (q1 and q2). (b) Find the output of each plant which maximise the firm's profit. Check that it is a maximum. (d) What are the output levels of each plant if the firm maximises Total Revenue?

Jun 03, 2022
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