You Are the Manager of a Firm That Produces Output

question 58

Multiple Choice

You are the manager of a firm that produces output in two plants.The demand for your firm's product is P = 96 − 15Q,where Q = Q₁ + Q₂.The marginal costs associated with producing in the two plants are MC₁ = 6Q₁ and MC₂ = 3Q₂.How much output should be produced in plant 2 in order to maximize profits?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Alternative Courses of Action

Various paths or strategies that can be taken to achieve a goal or resolve a problem.

Ethics Double-check

A process or step taken to ensure that actions, decisions, or policies adhere to ethical standards and principles.

Bounded Rationality

The concept that when individuals make decisions, their rationality is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.

Intellectual Capital

Refers to the intangible value of a business, representing the sum of its knowledge, skills, inventions, and connections.