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A monopoly has 2 production plants with cost functions C 1 =50 +0.1Q1(squared) and C 2 =30+0.05Q The demand it faces is Q=500-10P. What is the condition for profit maximization?

A. MC 1 (Q1 ) = MC 2 (Q2 ) = P (Q 1 + Q 2 )

B. MC 1 (Q1 ) = MC 2 (Q2) =MR (Q 1 + Q 2)

C. MC 1 (Q1 + Q 2) = MC 2 (Q1 + Q2) = P ( Q1+ Q 2)

D. MC 1 (Q 1+ Q 2) = MC 2 (Q 1+Q 2) = MR (Q1 + Q 2)

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M966525

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