You Are the Manager of a Firm That Produces Output

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 costs associated with producing in the two plants are MC₁ = 3Q₁ and MC₂ = 2Q₂.How much output should be produced in plant 1 in order to maximize profits?

A) 1
B) 2
C) 3
D) 4