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You Are the Manager of a Firm That Produces Output

question 72

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You are the manager of a firm that produces output in two plants.The demand for your firm's product is P = 120 − 6Q,where Q = Q1 + Q2.The marginal costs associated with producing in the two plants are MC1 = 2Q1 and MC2 = 4Q2.How much output should be produced in plant 1 in order to maximize profits?


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