You Are the Manager of a Firm That Produces Output

question 40

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 costs associated with producing in the two plants are MC₁ = 3Q₁ and MC₂ = 2Q₂.What price should be charged to maximize profits?

• A) $20.5
• B) $40.5
• C) $60.5
• D) $80.5

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Definitions:

Consolidation Process

The consolidation process involves combining the financial statements of a parent company with those of its subsidiaries to create a comprehensive group financial report.

Federally Funded

Referring to programs, projects, or institutions that receive financial support from the federal government.

Evaluations

Systematic assessments of the value, quality, or importance of something, often used to guide decision-making or improvements.

Research Projects

Systematic work undertaken to increase the stock of knowledge, often involving the collection and analysis of data.