A firm is producing two goods X and Y)that are related in consumption.The demand function for X is: 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

A firm is producing two goods X and Y)that are related in consumption.The demand function for X is:  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 A firm is producing two goods X and Y)that are related in consumption.The demand function for X is:  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

A Firm Is Producing Two Goods X and Y)that Are