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Refer to the Following Qd=12010PMCA=4+(1/5)QAMCB=6+(1/10)QB\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { B } = 6 + ( 1 / 10 ) Q _ { B }\end{array}

Question 17

Multiple Choice

Refer to the following.
A firm with two plants, A and B, has the following estimated demand and marginal cost functions:
Qd=12010PMCA=4+(1/5) QAMCB=6+(1/10) QB\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { B } = 6 + ( 1 / 10 ) Q _ { B }\end{array}
-In order to maximize profit, how many units of output should the firm produce?


A) 10
B) 15
C) 25
D) 45
E) 50

Correct Answer:

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