A Monopoly Has Two Production Plants with Cost Functions C₁

Multiple Choice

A monopoly has two production plants with cost functions C₁ = 40 + 0.2 Q₁² and C₂ = 50 + 0.1 Q₂².The demand it faces is Q = 480 − 5P.What is the profit-maximizing level of output?

A) Q₁ = 50; Q₂ = 100
B) Q₁ = 60; Q₂ = 120.
C) Q₁ = Q₂ = 75
D) Q₁ = Q₂ = 100