You Are the Manager of a Firm That Produces Output

question 54

Multiple Choice

You are the manager of a firm that produces output in two plants.The demand for your firm's product is P = 78- 15Q, where Q = Q₁ + Q₂.The marginal cost associated with producing in the two plants are MC₁ = 3Q₁ and MC₂ = 2Q₂.How much output should be produced in plant 1 in order to maximize profits?

• A)1.
• B)2.
• C)3.
• D)4.