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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