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You Are the Manager of a Firm That Produces Output

Question 1

Multiple Choice

You are the manager of a firm that produces output in two plants.The demand for your firm's product is P = 78 − 15Q,where Q = Q1 + Q2.The marginal costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2.What price should be charged in order to maximize revenues?


A) $39
B) $47
C) $52
D) $56

Correct Answer:

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