A firm with two plants,A and B,has the following estimated demand and marginal cost functions: $$\begin{array} { l }
Q _ { d } = 120 - 10 P \
M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \
M C _ { A } = 6 + ( 1 / 10 ) Q _ { A }
\end{array}$$ How should the firm allocate total output between the two plants in order to maximize profit?

Question

A firm with two plants,A and B,has the following estimated demand and marginal cost functions: $$\begin{array} { l } 
Q _ { d } = 120 - 10 P \
M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \
M C _ { A } = 6 + ( 1 / 10 ) Q _ { A }
\end{array}$$ How should the firm allocate total output between the two plants in order to maximize profit?

Quizplus · Accepted Answer

The Answer of A firm with two plants,A and B,has the following estimated demand and marginal cost functions: $$\begin{array} { l } 
Q _ { d } = 120 - 10 P \
M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \
M C _ { A } = 6 + ( 1 / 10 ) Q _ { A }
\end{array}$$ How should the firm allocate total output between the two plants in order to maximize profit?

A Firm with Two Plants,A and B,has the Following Estimated Qd=120−10PMCA=4+(1/5)QAMCA=6+(1/10)QA\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { A } = 6 + ( 1 / 10 ) Q _ { A }\end{array}Qd​=120−10PMCA​=4+(1/5)QA​MCA​=6+(1/10)QA​​

A Firm with Two Plants,A and B,has the Following Estimated $\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { A } = 6 + ( 1 / 10 ) Q _ { A }\end{array}$