Relate to the following:
A firm is producing two goods (X and Y) that are related in consumption. The demand function for X is:
$$Q _ { \boldsymbol { d } } = 120 - 4 P _ { x } - 10 P _ { y }$$
-In order to maximize profit, the firm
A) should determine jointly the levels of output for the two goods.
B) should treat the price of Y as given when determining the optimal production of good X.
C) should choose the levels of output for goods X and Y at which total marginal revenue equals total marginal cost.
D) both a and b
E) both a and c

Question

Relate to the following:
A firm is producing two goods (X and Y) that are related in consumption. The demand function for X is:
 $$Q _ { \boldsymbol { d } } = 120 - 4 P _ { x } - 10 P _ { y }$$
-In order to maximize profit, the firm
A) should determine jointly the levels of output for the two goods.
B) should treat the price of Y as given when determining the optimal production of good X.
C) should choose the levels of output for goods X and Y at which total marginal revenue equals total marginal cost.
D) both a and b
E) both a and c

Quizplus · Accepted Answer

The Answer of Relate to the following:
A firm is producing two goods (X and Y) that are related in consumption. The demand function for X is:
 $$Q _ { \boldsymbol { d } } = 120 - 4 P _ { x } - 10 P _ { y }$$
-In order to maximize profit, the firm
A) should determine jointly the levels of output for the two goods.
B) should treat the price of Y as given when determining the optimal production of good X.
C) should choose the levels of output for goods X and Y at which total marginal revenue equals total marginal cost.
D) both a and b
E) both a and c

Relate to the Following: a Firm Is Producing Two Goods Qd=120−4Px−10PyQ _ { \boldsymbol { d } } = 120 - 4 P _ { x } - 10 P _ { y }Qd​=120−4Px​−10Py​

Relate to the Following:
a Firm Is Producing Two Goods $Q _ { \boldsymbol { d } } = 120 - 4 P _ { x } - 10 P _ { y }$