A Firm with Two Plants,A and B,has the Following Estimated $$\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { A } = 6 + ( 1 / 10 ) Q _ { A }\end{array}$$

Multiple Choice

A firm with two plants,A and B,has the following estimated demand and marginal cost functions: $$\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { A } = 6 + ( 1 / 10 ) Q _ { A }\end{array}$$ How should the firm allocate total output between the two plants in order to maximize profit?

A) produce 5 units in plant A,10 units in plant B
B) produce 15 units in plant A,10 units in plant B
C) produce 20 units in plant A,20 units in plant B
D) produce 20 units in plant A,25 units in plant B
E) none of the above