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.

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Definitions:

Communication

The process of exchanging information, ideas, thoughts, and feelings between people through speaking, writing, or other mediums to convey messages effectively.

Transfer

The process of moving an employee, resources, or technology from one position, location, or application to another within or between organizations.

Understanding

The ability to grasp the meaning, significance, or nature of something, including concepts, situations, or behaviors.

Successful Decoding

The accurate interpretation or understanding of a received message or piece of information.