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 condition for profit maximization?
A. MC1(Q1 + Q2) = MC2(Q1 + Q2) = MR (Q1 + Q2).
B. MC1(Q1 + Q2) = MC2(Q1 + Q2) = P (Q1 + Q2).
C. MC1(Q1) = MC2(Q2) = MR(Q1 + Q2).
D. MC1(Q1) = MC2(Q2) = P(Q1 + Q2).
Answer: C
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