Refer to the Following $$\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { B } = 6 + ( 1 / 10 ) Q _ { B }\end{array}$$

question 91

Multiple Choice

Refer to the following.
A firm with two plants, A and B, has the following estimated demand and marginal cost functions:
$$\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { B } = 6 + ( 1 / 10 ) Q _ { B }\end{array}$$
-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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Definitions:

Token Economy

A behavior modification system used in settings such as classrooms or psychiatric hospitals, where individuals earn tokens for exhibiting desired behaviors.

Chronic Schizophrenia

A long-term, severe, and disabling brain disorder characterized by delusions, hallucinations, and disordered thinking and behavior.

Distorted Thinking

A pattern of thought that is twisted or misconstrued, often leading to negative emotional outcomes or unhealthy behavior.

Unrealistic Beliefs

False or distorted beliefs about ourselves, others, or the world that can lead to problematic behaviors and emotional distress.