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

Question

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

Quizplus · Accepted Answer

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

Refer to the Following Qd=120−10PMCA=4+(1/5)QAMCB=6+(1/10)QB\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { B } = 6 + ( 1 / 10 ) Q _ { B }\end{array}Qd​=120−10PMCA​=4+(1/5)QA​MCB​=6+(1/10)QB​​

Refer to the Following $\begin{array} { l } Q _ { d } = 120 - 10 P \\M C _ { A } = 4 + ( 1 / 5 ) Q _ { A } \\M C _ { B } = 6 + ( 1 / 10 ) Q _ { B }\end{array}$