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 = 20 − Q,where Q = Q₁ + Q₂.The marginal costs associated with producing in the two plants are MC₁ = 2 and MC₂ = 2Q₂.What is the profit-maximizing price that the firm should charge?

A) $8
B) $9
C) $11
D) $12