Refer to the Following -What Are the Profit-Maximizing Prices for the Two Goods?
A)

question 29

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 prices for the two goods?

• A) \(P _ { X }\) = $375,\(P _ { y }\) = $284
• B) \(P _ { X }\) = $423,\(P _ { y }\) = $712
• C) \(P _ { x }\) = $166,\(P _ { y }\) = $324
• D) \(P _ { X }\) = $481,\(P _ { y }\) = $588

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Definitions:

Illusory Correlation

The perception of a relationship between two variables when no such relationship actually exists.

Supreme Court

The highest judicial court in a country or state, which has the final authority over all legal disputes.

Theory Perseverance

Proposes that once the mind draws a conclusion, it tends to stick with that conclusion unless there is overwhelming evidence to change it.

Counterfactual Thinking

Imagining alternatives to past or present events or circumstances.