You Are the Manager of a Firm That Produces Output

question 8

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.What price should be charged in order to maximize revenues?

• A)$39.
• B)$47.
• C)$52.
• D)$56.

---

Definitions:

Pounds

A unit of weight in the imperial and US customary systems, equal to 16 ounces or approximately 0.453592 kilograms.

Follicular Phase

The first phase of the menstrual cycle during which follicles in the ovary mature, ending with ovulation.

Ovulation

The periodic ripening and rupture of a mature graafian follicle and the discharge of the ovum.

Menstruation

The monthly process in females of discharging blood and other materials from the lining of the uterus.