Refer to the Following What Are the Profit-Maximizing Levels of Output for the Two

question 14

Multiple Choice

Refer to the following: $$\begin{array} { l } P _ { X } = 666 - 0.5 Q _ { X } - 2 Q _ { Y } \\P _ { Y } = 484.5 - 1.5 Q _ { Y } - 0.25 Q _ { X } \\M C _ { X } = 20 + 2 Q _ { X } \\M C _ { Y } = 4 + Q _ { Y }\end{array}$$ What are the profit-maximizing levels of output for the two goods?

• A) \(Q _ { x }\) = 30, \(Q _ { Y }\) = 34
• B) \(Q _ { x }\) = 63, \(Q _ { Y }\) = 66
• C) \[Q _ { x }\] = 142, \(Q _ { Y }\) = 110
• D) \(Q _ { x }\) = 191, \(Q _ { Y }\) = 163

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Definitions:

Generates Revenues

Generates revenues refers to the activities or strategies a company employs to earn income from its business operations.

Profitability

A measure of the efficiency and financial success of a company, usually determined by the ratio of its profits to its revenues.

Controllable Costs

Expenses that can be managed or influenced by decisions made by a company's management.

Noncontrollable Costs

Costs that cannot be influenced or altered by the actions of a manager or business unit, often determined by external factors.