A Monopoly Has Two Production Plants with Cost Functions C₁

Multiple Choice

A monopoly has two production plants with cost functions C₁ = 50 + 0.1Q₁² and C₂ = 30 + 0.05Q₂².The demand it faces is Q = 500 − 10P.What is the condition for profit maximization?

A) MC₁(Q₁) = MC₂(Q₂) = P(Q₁ + Q₂) .
B) MC₁(Q₁) = MC₂(Q₂) = MR(Q₁ + Q₂) .
C) MC₁(Q₁ + Q₂) = MC₂(Q₁ + Q₂) = P (Q₁ + Q₂) .
D) MC₁(Q₁ + Q₂) = MC₂(Q₁ + Q₂) = MR (Q₁ + Q₂) .