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You Are the Manager of a Firm That Produces Output

Question 135

Multiple Choice

You are the manager of a firm that produces output in two plants.The demand for your firm's product is P = 120 − 6Q,where Q = Q1 + Q2.The marginal costs associated with producing in the two plants are MC1 = 2Q1 and MC2 = 4Q2.What price should be charged to maximize profits?


A) 60
B) 66
C) 70
D) 76

Correct Answer:

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