Monopoly

Posted by Nikkita on Jan 21, 2017; 5:46am
URL: http://discussion-forum.276.s1.nabble.com/Monopoly-tp7603100.html

 Suppose a monopolist faces market demand curve p(q) = a-bq. There are N plants, i=1,2,..., N. Each plant has the cost function, TCi(qi) = F+c(qi)2, F,c > 0. What is plant output?

 

a)      q= a/2(bN+2c)

b)      q= a/2(2bN+c)

c)       q= a/2(bN+c)

d)      q= a/4(bN+c)

(Correct Ans= c, please solve)