Multiple Choice
Two stores are located side by side and attract customers to each other and to themselves by advertising.Where x1 and x2 are the advertising expenditures of stores 1 and 2, the profits of the firms are (48 + x2) x1 - 2(x1) 2 for store 1 and (54 + x1) x2 - 2(x2) 2 for store 2.Knowing these functions, one investor buys both stores.In order to maximize his total profits, how much should he spend on advertising for store 1?
A) $10
B) $26
C) $25
D) $35
E) None of the above.
Correct Answer:

Verified
Correct Answer:
Verified
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