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

Multiple Choice

A firm sells two goods (X and Y) that are related in consumption.The estimated inverse demand and cost functions are: $$\begin{array} { l } P _ { X } = 105 - 0.5 Q _ { X } - 0.75 Q _ { Y } \\P _ { Y } = 120 - Q _ { Y } - 0.5 Q _ { X } \\M C _ { X } = 10 + 0.25 Q _ { X } \\M C _ { Y } = 16 + 0.5 Q _ { Y }\end{array}$$
What are the profit-maximizing levels of output for the two goods?

A) $Q _ { x }$ = 6, $Q _ { Y }$ = 3
B) $Q _ { x }$ = 40, $Q _ { Y }$ = 40
C) $Q _ { x }$ = 58, $Q _ { Y }$ = 30
D) $Q _ { x }$ = 240, $Q _ { Y }$ = 270
E) none of the above