The second largest public utility in the nation is the sole provider of electricity in 32 counties of southern Florida. To meet the monthlydemand for electricity in these counties, which is given by the inverse demand function P= 1,200 – 4Q, the utility company has set uptwo electric generating facilities: Q kilowatts are produced at facility 1, and Q2 kilowatts are produced at facility 2 (so Q= Q + Q2).The costs of producing electricity at each facility are given by G(Q) = 8,000 + 6Q2 and C2(2) = 6,000 + 3022, respectively.Determine the profit-maximizing amounts of electricity to produce at the two facilities, the optimal price, and the utility company'sprofits.Instruction: Enter your responses rounded to two decimal places.Electricity at facility 1:unitsElectricity at facility 2:unitsPrice: $Instruction: Use the rounded values calculated above. Enter your response rounded to the nearest two decimal places.Profits: $

Inverse demand function, P=1200-4QTC of firm 1, C1(Q1)=8000+6Q12TC of firm 2, C2(Q2)=6000+3Q22

The second largest public utility in the nation is the sole provider of electricity in 32 counties of southern Florida. To meet the monthly demand for electricity in these counties, which is given by the inverse demand function P= 1,200 – 4Q, the utility company has set up two electric generating facilities: Q kilowatts are produced at facility 1, and Q2 kilowatts are produced at facility 2 (so Q= Q+ Q). The costs of producing electricity at each facility are given by G(Q) = 8,000 + 6Q² and C2(Q2) = 6,000 + 3022, respectively. Determine the profit-maximizing amounts of electricity to produce at the two facilities, the optimal price, and the utility company's profits. Instruction: Enter your responses rounded to two decimal places. Electricity at facility 1:[ units Electricity at facility 2:| units Price: $ Instruction: Use the rounded values calculated above. Enter your response rounded to the nearest two decimal places. Profits: $

The second largest public utility in the nation is the sole provider of electricity in 32 counties of southern Florida. To meet the monthly demand for electricity in these counties, which is given by the inverse demand function P= 1,200 – 4Q, the utility company has set up two electric generating facilities: Q kilowatts are produced at facility 1, and Q2 kilowatts are produced at facility 2 (so Q= Q+ Q). The costs of producing electricity at each facility are given by G(Q) = 8,000 + 6Q² and C2(Q2) = 6,000 + 3022, respectively. Determine the profit-maximizing amounts of electricity to produce at the two facilities, the optimal price, and the utility company's profits. Instruction: Enter your responses rounded to two decimal places. Electricity at facility 1:[ units Electricity at facility 2:| units Price: $ Instruction: Use the rounded values calculated above. Enter your response rounded to the nearest two decimal places. Profits: $

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter5: Supply, Demand, And Price: Applications

Section: Chapter Questions

Problem 8QP

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