A Firm with Two Plants,A and B,has the Following Estimated $$\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { A } = 6 + ( 1 / 10 ) Q _ { A }\end{array}$$

question 103

Multiple Choice

A firm with two plants,A and B,has the following estimated demand and marginal cost functions: $$\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { A } = 6 + ( 1 / 10 ) Q _ { A }\end{array}$$ How should the firm allocate total output between the two plants in order to maximize profit?

• A)produce 5 units in plant A,10 units in plant B
• B)produce 15 units in plant A,10 units in plant B
• C)produce 20 units in plant A,20 units in plant B
• D)produce 20 units in plant A,25 units in plant B
• E)none of the above

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