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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 91

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}
-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

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