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You Are the Manager of a Firm That Produces Output

Question 8

Multiple Choice

You are the manager of a firm that produces output in two plants.The demand for your firm's product is P = 78- 15Q, where Q = Q1 + Q2.The marginal cost associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2.What price should be charged in order to maximize revenues?


A) $39.
B) $47.
C) $52.
D) $56.

Correct Answer:

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