Multiple Choice
A firm produces two products, "r" and "s", and the production process is such that one unit of "r" is always obtained with one unit of "s". If the demand curves for "r" and "s" are estimated to be:
Qr = 75 - Pr so that MRr = 75 - 2Qr)
Qs = 100 - .5Ps so that MRs = 200 - 4Qs)
And the marginal cost of production is MC = 75 + 4Qj, where Qj consists of one unit of each product, how much of product "r" and product "s" should the firm sell to maximize profit?
A) 10
B) 20
C) 30
D) 40
E) 50
Correct Answer:

Verified
Correct Answer:
Verified
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