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Fred Stickwick Produces Fixed Proportion Goods a and B,with QA

Question 33

Multiple Choice

Fred Stickwick produces fixed proportion goods A and B,with QA = QB,marginal costs MC,and marginal revenues MRA and MRB.If demand for A is greater than demand for B,Fred should only:


A) produce B to the quantity where MRB = 0.
B) sell B to the quantity where MRB = 0 if MRA is still > MC.
C) produce B to the quantity where MRB = MC.
D) sell B to the quantity where MRB = MC.
E) produce B to the quantity where MRB = MRA.

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