Figure 11-2
-A monopolist in the radio industry has two radio-making plants.The marginal cost of radio production by Plant A is $4Q (where Q is the number of radios produced) and the marginal cost of radio production by Plant B is always $16.If the demand curve for radios is downward sloping, the monopolist will
A)never produce radios at Plant A.
B)always produce four times as many radios at Plant B as at A.
C)never produce more than four radios at Plant A.
D)produce radios at Plant A only as a last resort.

Question

Figure 11-2 
-A monopolist in the radio industry has two radio-making plants.The marginal cost of radio production by Plant A is $4Q (where Q is the number of radios produced) and the marginal cost of radio production by Plant B is always $16.If the demand curve for radios is downward sloping, the monopolist will
A)never produce radios at Plant A. 
B)always produce four times as many radios at Plant B as at A. 
C)never produce more than four radios at Plant A. 
D)produce radios at Plant A only as a last resort.

Quizplus · Accepted Answer

The Answer of Figure 11-2 
-A monopolist in the radio industry has two radio-making plants.The marginal cost of radio production by Plant A is $4Q (where Q is the number of radios produced) and the marginal cost of radio production by Plant B is always $16.If the demand curve for radios is downward sloping, the monopolist will
A)never produce radios at Plant A. 
B)always produce four times as many radios at Plant B as at A. 
C)never produce more than four radios at Plant A. 
D)produce radios at Plant A only as a last resort.

Figure 11-2 -A Monopolist in the Radio Industry Has Two Radio-Making Plants.The