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 demand and cost conditions are: $$\begin{array} { l } P _ { X } = 20 - 0.1 Q _ { X } - 0.05 Q _ { y } \\P _ { y } = 70 - 0.3 Q _ { y } - 0.1 Q _ { X } \\M C _ { X } = 1 + 0.1 Q _ { X } \\M C _ { y } = 2 + 0.25 Q _ { y }\end{array}$$ What are the profit-maximizing prices for the two goods?

A) $P _ { X }$ = $25.60, $P _ { y }$ = $20.50
B) $P _ { X }$ = $30, $P _ { y }$ = $35
C) $P _ { X }$ = $50, $P _ { y }$ = $45
D) $P _ { X }$ = $11.20, $P _ { y }$ = $42.70