You Are the Manager of a Firm That Produces Output

question 96

Multiple Choice

You are the manager of a firm that produces output in two plants.The demand for your firm's product is P = 20 − Q,where Q = Q₁ + Q₂.The marginal costs associated with producing in the two plants are MC₁ = 2 and MC₂ = 2Q₂.What is the profit-maximizing price that the firm should charge?

• A) $8
• B) $9
• C) $11
• D) $12

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Definitions:

Job Classification

The categorization of positions within an organization based on duties, responsibilities, and the level of authority.

Better Benefits

Enhanced advantages or perks provided to employees, beyond statutory requirements, aimed at improving their work-life balance and job satisfaction.

Equity Capital

Equity capital is the amount of money that is invested in a company by its owners, in exchange for ownership interest or shares.

Crowdfunding

The method of financing a project or business through the collection of minor contributions from a wide base of individuals, mainly through online platforms.