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:

Conventional Arbitration

A dispute resolution technique where an impartial third party listens to both sides and makes a binding decision, commonly used in labor disputes.

Final Offer Arbitration

A conflict resolution process where each party to a dispute makes a final offer, and an arbitrator chooses one of these offers as the resolution, without modification.

Compulsory Dispute Resolution

A legal requirement for conflicting parties to undergo a dispute resolution process, such as mediation or arbitration, before proceeding to litigation.

Arbitration

A method of resolving disputes outside the courts, where a neutral third party (the arbitrator) renders a decision after hearing arguments and evidence from both sides.