For the Multiproduct Cost Function C(Q₁,Q₂)= 100 + 2Q₁Q₂

question 17

Multiple Choice

For the multiproduct cost function C(Q₁,Q₂) = 100 + 2Q₁Q₂ + 4Q₁²,what is the marginal cost function for good one?

• A) MC₁ = 2Q₂ + 4Q₁ − Q₂².
• B) MC₁ = 2Q₂ + 8Q₁.
• C) MC₁ = 100 + 2Q₁Q₂ + 4Q₁².
• D) MC₁ = 4Q₁² − 2 Q₂².

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Definitions:

Machine-Hours

A measure of the time that a machine is in operation, used in costing and operational analysis.

Departmental Predetermined Rates

Overhead allocation rates set in advance for specific departments to allocate indirect costs more accurately.

Markup

An additional amount included in the cost price of products to account for overheads and gain, thereby establishing the price at which they are sold.

Machine-Hours

The total number of hours machines are operated during the production process.