(Solution) - A monopolist s inverse demand function is P 100 -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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A monopolist?s inverse demand function is P = 100 ? Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is
MC1(Q1) = 4Q1, and the marginal cost of producing at facility 2 is
MC2(Q2) = 2Q2.
a. Provide the equation for the monopolist?s marginal revenue function.
b. Determine the profit-maximizing level of output for each facility.
c. Determine the profit-maximizing price.