Suppose That a Manufacturer Produces Two Brands of a Product

question 24

Multiple Choice

Suppose that a manufacturer produces two brands of a product, brand 1 and brand 2. Suppose the demand for brand 1 is thousand units and the demand for brand 2 is thousand units, where p₁ and p₂ prices in dollars. If the joint cost function is , in thousands of dollars, how many of each brand should be produced to maximize profit? ​

• A) 74 units of brand 1 82 units of brand 2
• B) 9 units of brand 1 52 units of brand 2
• C) 74 units of brand 1 52 units of brand 2
• D) 14 units of brand 1 38 units of brand 2
• E) 27 units of brand 1 77 units of brand 2

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Definitions:

Behavior Norms

Social rules that govern the actions within a group, specifying appropriate and acceptable behaviors for its members.

Independent Self

A concept of self-identity that emphasizes individualism, autonomy, and self-reliance, often contrasting with a collectivist or interdependent view of self.

Interdependent Self

represents a self-concept that is fundamentally connected to and contingent on relationships with others.

Collective Self

A concept referring to the perception or awareness of belonging to a group, where the group's identity and interests are integrated into an individual's self-identity.