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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Definitions:

Creditor's Judgment

A legal decision awarded to a creditor, granting them the right to collect a specified amount of money from a debtor who has failed to fulfill their financial obligations.

Homestead Exemption

A legal provision that protects the value of a home from property taxes, creditors, and circumstances arising from the death of the homeowner's spouse.

Lien

A legal right or claim against a property as security for a debt or charge.

Creditors' Rights

Legal rights that enable creditors to collect debts owed to them, including the right to sue, garnish wages, or foreclose property.