...in ether of two plants...? A drug company has a monopoly on a new patented medicine. The product can be made in ether of two plants (or at both). The costs of production for the two plants are MC1 = 20 + 2q1 and MC2 = 10 + 5q2. The firm estimates demand for the medicine is p = 20-3q.
How much should the rm produce in each plant? At what price should it sell its product?
How much should the rm produce in each plant? At what price should it sell its product?