You are the manager of a firm that produces output in two plants.The demand for your firm's product is P = 120 - 6Q, where Q = Q1 + Q2.The marginal cost associated with producing in the two plants are MC1 = 2Q1 and MC2 = 4Q2.How much output should be produced in plant 1 in order to maximize profits?
A) 3.
B) 6.
C) 9.
D) 12.
Correct Answer:
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