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 profit-maximizing level of output?
A. Q1 = Q2 = 62.5.
B. Q1 = Q2 = 125.
C. Q1 = 62.5; Q2 = 125.
D. Q1 = 125; Q2 = 62.5.
Answer: C
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