You Are the Manager of a Firm That Produces Output

question 72

Multiple Choice

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?

• A) 3
• B) 6
• C) 9
• D) 12

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Definitions:

GABA

Gamma-Aminobutyric Acid, an inhibitory neurotransmitter in the brain that helps regulate neuronal excitability and plays a key role in reducing anxiety and promoting relaxation.

Two-Factor Theory

The most influential theory of fear and phobias during the 1960s and 1970s. The model proposed that fears are acquired by classical conditioning, but maintained by operant conditioning.

Little Albert

The subject of a famous psychology experiment by John B. Watson which demonstrated that emotional responses could be conditioned in humans.

Little Hans

A case study by Sigmund Freud involving the analysis of a young boy's fear of horses, which Freud interpreted in terms of the Oedipus complex.