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 83

Multiple Choice

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

• A) $7
• B) $8
• C) $9
• D) $9.50
• E) none of the above

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