Suppose the inverse demand for a monopolist’s product is given by P = 70-0.5Q. The monopolist can produce output in two plants. The marginal coat of producing in plant 1 is MC1 = 3Q1 and the marginal cost of producing in plant 2 is MC2 = Q2. How much output should be produce in each plat to maximize profit? And what price should be charged? Compare to perfect competition, monopolist charged higher price and supply less quantity with long run firm equilibrium. Discuss using suitable graph. Explain the deadweight loss of monopolization

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Suppose the inverse demand for a monopolist’s product is given by P
= 70-0.5Q. The monopolist can produce output in two plants. The
marginal coat of producing in plant 1 is MC1 = 3Q1 and the marginal
cost of producing in plant 2 is MC2 = Q2. How much output should be
produce in each plat to maximize profit? And what price should be
charged?

Compare to perfect competition, monopolist charged higher price and
supply less quantity with long run firm equilibrium. Discuss using
suitable graph.

Explain the deadweight loss of monopolization

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