A firm sells two goods (X and Y)that are related in consumption.The estimated demand and cost conditions are: $$\begin{array} { l }
P _ { X } = 20 - 0.1 Q _ { X } - 0.05 Q _ { y } \
P _ { y } = 70 - 0.3 Q _ { y } - 0.1 Q _ { X } \
M C _ { X } = 1 + 0.1 Q _ { X } \
M C _ { y } = 2 + 0.25 Q _ { y }
\end{array}$$ What are the profit-maximizing levels of output for the two goods?
A) $Q _ { x }$ = 20, $Q _ { Y }$ = 10
B) $Q _ { x }$ = 41, $Q _ { Y }$ = 24
C) $Q _ { x }$ = 56, $Q _ { Y }$ = 24
D) $Q _ { x }$ = 51, $Q _ { Y }$ = 74
E)none of the above

Question

A firm sells two goods (X and Y)that are related in consumption.The estimated demand and cost conditions are: $$\begin{array} { l } 
P _ { X } = 20 - 0.1 Q _ { X } - 0.05 Q _ { y } \
P _ { y } = 70 - 0.3 Q _ { y } - 0.1 Q _ { X } \
M C _ { X } = 1 + 0.1 Q _ { X } \
M C _ { y } = 2 + 0.25 Q _ { y }
\end{array}$$ What are the profit-maximizing levels of output for the two goods?
A) $Q _ { x }$ = 20, $Q _ { Y }$ = 10
B) $Q _ { x }$ = 41, $Q _ { Y }$ = 24
C) $Q _ { x }$ = 56, $Q _ { Y }$ = 24
D) $Q _ { x }$ = 51, $Q _ { Y }$ = 74
E)none of the above

Quizplus · Accepted Answer

The Answer of A firm sells two goods (X and Y)that are related in consumption.The estimated demand and cost conditions are: $$\begin{array} { l } 
P _ { X } = 20 - 0.1 Q _ { X } - 0.05 Q _ { y } \
P _ { y } = 70 - 0.3 Q _ { y } - 0.1 Q _ { X } \
M C _ { X } = 1 + 0.1 Q _ { X } \
M C _ { y } = 2 + 0.25 Q _ { y }
\end{array}$$ What are the profit-maximizing levels of output for the two goods?
A) $Q _ { x }$ = 20, $Q _ { Y }$ = 10
B) $Q _ { x }$ = 41, $Q _ { Y }$ = 24
C) $Q _ { x }$ = 56, $Q _ { Y }$ = 24
D) $Q _ { x }$ = 51, $Q _ { Y }$ = 74
E)none of the above

A Firm Sells Two Goods (X and Y)that Are Related