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2) (4 p.) Market demand is P(Q) = 40 – Q. A multi-plant monopolist operates two plants, with average cost functions AC1(qı) =

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Morldet demand Firm (plout) P yo-Q1 TRIP.Q MAI-dTR uo()a AC TC dai 8C1) Condi e frtit-ni gMRI AC 40-a R MO-8 32 IG units Subattutu uto tce eguaion 40-16 Plant 2 MR2 MR= Mo-22 AC21 0.252 T2(0.25 7 to.25 MC dTC dz PraoSo2+32 40-1 39 2.S 2 39 RS 2 IS. 6 its Subetituti ng equution uto P =o-2 (b) i achieved Since Alecative e. Through Candition

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