Refer to the Following:
a Firm Sells Two Goods (X

question 18

Multiple Choice

Refer to the following:
A firm sells two goods (X and Y) that are related in consumption. The estimated demand and cost conditions are:
$$\begin{array} { l } P _ { X } = 20 - 0.1 Q _ { X } - 0.05 Q _ { y } \\P _ { y } = 70 - 0.3 Q _ { y } - 0.1 Q _ { X } \\M C _ { X } = 1 + 0.1 Q _ { X } \\M C _ { y } = 2 + 0.25 Q _ { y }\end{array}$$
-What are the profit-maximizing levels of output for the two goods?

• A)\(Q _ { x }\) = 20,\(Q _ { Y }\) = 10
• B) \(Q _ { x }\) = 41,\(Q _ { Y }\) = 24
• C) \(Q _ { x }\) = 56,\(Q _ { Y }\) = 24
• D) \(Q _ { x }\) = 51,\(Q _ { Y }\) = 74
• E) none of the above

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