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A drug company has a monopoly on a new patented medicine

A drug company has a monopoly on a new
patented medicine. The product can be made in either
of two plants. The costs of production for the
two plants are MC1= 20 + 2Q1, and MC2 = 10 +
5Q2. The firm’s estimate of the demand for the product is P = 20 – 3(Q1 + Q2). How much should the
firm plan to produce in each plant, and at what price
should it plan to sell the product?


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