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.What price should be charged to maximize profits?

A) $20.5
B) $40.5
C) $60.5
D) $80.5