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The inverse demand for a monopoly's product is P=92-5Q, where Q=Q1+Q2. The marginal cost of producing in the two plants is MC1=2Q1 and MC2=6Q2.
a) How much output should be produced in each plant?
b) What is the firm's profit maximizing price?
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What is a minimum monthly rent required to make this investment economically acceptable if the company's minimum attractive rate of return is 6% per year, compounded monthly?
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