A Firm Produces Two Products, "R" and "S", and the Production

question 24

Multiple Choice

A firm produces two products, "r" and "s", and the production process is such that one unit of "r" is always obtained with one unit of "s". If the demand curves for "r" and "s" are estimated to be:
Q_r = 75 - P_r so that MR_r = 75 - 2Q_r)
Q_s = 100 - .5P_s so that MR_s = 200 - 4Q_s)
And the marginal cost of production is MC = 75 + 4Q_j, where Q_j consists of one unit of each product, how much of product "r" and product "s" should the firm sell to maximize profit?

• A) 10
• B) 20
• C) 30
• D) 40
• E) 50

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Definitions:

Strategy

A plan of action designed to achieve a long-term or overall aim.

Well-written Goals

Objectives that are clearly defined, achievable, measurable, relevant, and time-bound, enhancing focus and direction.

Components

The individual parts or elements that make up a larger system, product, or assembly.

Differentiation

The act of distinguishing or creating a distinctive difference between products, services, or concepts, often to achieve competitive advantage.