A firm sells two goods ( X andY) that are related in consumption. The estimated inverse demand and cost functions are: P_X = 105 0.5 Q_X 0.75 Q_Y P_Y = 120 Q_Y 0.5 Q_X MC_X= 10 + 0.25 Q_X MC_Y = 16 + 0.5 Q_Y What are the profit-maximizing prices for the two goods? (Choose answer below and give step-by-step instructions).

A) P_X= $40, PY = $32.50 B) P_X= $53.50, PY = $61 C) P_X= $80, PY = $55 D) P_X= $112.50, PY = $87.75 E) None of the choices are correct