Suppose you are a monopolist operating two plants at different locations. Both plants produce the same product; Q1 is the quantity produced at plant 1 and Q2 is the quantity produced at plant2. You face and inverse demand function of:
P=500 – 2Qm
Where Qm is the market demand. The cost functions for the two plants respectively are
C1=25+2Q 1^² and C2=20+Q2²
a.) What are your marginal revenue and marginal cost functions?
