You Are the Manager of a Firm That Produces Output

question 58

Multiple Choice

You are the manager of a firm that produces output in two plants.The demand for your firm's product is P = 96 − 15Q,where Q = Q₁ + Q₂.The marginal costs associated with producing in the two plants are MC₁ = 6Q₁ and MC₂ = 3Q₂.How much output should be produced in plant 2 in order to maximize profits?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Wealth

A measure of the value of all the assets of worth owned by a person, community, company, or country.

Land

The solid surface of the earth that is not covered by water, or the property and natural resources found on it, often considered in terms of ownership and use.

Voltaire

An influential French Enlightenment writer, historian, and philosopher known for his wit, his criticism of Christianity, and his advocacy of freedom of speech and religion.

Candide

A satirical novella by Voltaire, first published in 1759, which criticizes the optimism promoted by the philosophies of the Enlightenment, using the naive protagonist, Candide, to explore themes of freedom, happiness, and human suffering.