Dan is the owner of a price-taking company that manufactures sporting goods.One particular facility Dan owns produces baseball bats and baseball gloves.His cost function for baseball bats is CB(QB,QG) = 100QB + QB2 + QBQG and the marginal cost is MCB = 100 + 2QB + QG,where QB is the output level for bats and QG is the output level for gloves.Dan's cost function for baseball gloves is CG(QB,QG) = 50QG + QG2 + QGQB,and the marginal cost is MCG = 50 + 2QG + QB.The price of a baseball bat is $240 and the price of a baseball glove is $150.What is the profit-maximizing sales quantity for baseball bats?
A) 10
B) 20
C) 30
D) 60
Correct Answer:
Verified
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