Statistics (current outcome)
Hint: because of your output decision, your marginal cost is fixed and depicted by the horizontal bold line. Outputs in Plant 1 and 2 fall from the level of MC.
The Monopolist's decision with two production plants
The Monopolist's decision with two production plants
Welcome! Consider you run a company which holds a monopoly on some market and you face a linear demande curve (p = a - b.Q). You can use two plants. In plant 1, your Marginal cost is MC1(q1) = c1+d1.q1 as you produce q1 units. In plant 2, your Marginal cost is MC2(q2) = c2+d2.q2 as you produce q2 units.
This app simulates the impact of your output strategy on your profit but also on consumer surplus and welfare. See Help section for further information.