A firm with two plants,A and B,has the following estimated demand and marginal cost functions:
How should the firm allocate total output between the two plants in order to maximize profit?
A) produce 5 units in plant A,10 units in plant B
B) produce 15 units in plant A,10 units in plant B
C) produce 20 units in plant A,20 units in plant B
D) produce 20 units in plant A,25 units in plant B
E) none of the above
Correct Answer:
Verified
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