Refer to the following:
A firm sells two goods (X and Y) that are related in consumption. The estimated inverse demand and cost functions are:
-What are the profit-maximizing prices for the two goods?
A) = $40, = $32.50
B) = $53.50, = $61
C) = $80, = $55
D) = $112.50, = $87.75
E) none of the above
Correct Answer:
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