How much total output will the company choose to produce

Reference no: EM13219449

Suppose a company has a monopoly on a game called Monopoly and faces a demand curve given by QT = 100??P and a marginal revenue function given by MR = 100 2QT where QT equals the combined total number of games produced per hour in the company's two factories (QT = q1 + q2). If factory 1 has a marginal cost function given by MC1 = q1 5 and factory 2 has a marginal cost function given by MC2 = 0:5q2 ?? 5, how much total output will the company choose to produce and how will it distribute this production between its two factories in order to maximize profits?

Reference no: EM13219449

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