A Firm Produces Two Products, X and Y, and the Production

question 23

Multiple Choice

A firm produces two products, x and y, and the production process is such that one unit of x is always obtained with one unit of y. If the demand for x and y are estimated to be:
Q_x = 100 - P_x so that MR_x = 100 - 2Q_x)
Q_y = 220 - P_y so that MR_y = 220 - 2Q_y)
And the marginal cost of production is MC = 50 + .5Q_j, where Q_j consists of one unit of each product, how much of product x should the firm sell in order to maximize profit?

• A) 30
• B) 40
• C) 50
• D) 60
• E) 70

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Definitions:

Copying

The act of reproducing or imitating another's work or behavior. In a new definition: An essential learning process involving the replication of patterns, behaviors, or information observed in others.

Defense Mechanism

Unconscious psychological strategies used to cope with reality and maintain self-image.

Rationalization

An ego defense mechanism in which one creates acceptable reasons for unwanted or undesirable behavior.

Intellectualization

A defense mechanism in which reasoning is used to block confrontation with an unconscious conflict and its associated emotional stress.