A Firm Sells Two Goods X and Y)that Are Related

question 5

Multiple Choice

A firm sells two goods X and Y) that are related in consumption.The estimated inverse demand and cost functions are:

What are the profit-maximizing levels of output for the two goods?

• A) = 6, = 3
• B) = 40, = 40
• C) = 58, = 30
• D) = 240, = 270
• E)none of the above

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