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Eric provides cheese, H, and milk, M, to the market with the total cost function, C. x denotes multiplication. C equals to 10 plus 0.4
Eric provides cheese, H, and milk, M, to the market with the total cost function, C. x denotes multiplication. C equals to 10 plus 0.4 x Hs plus 0.2 x Ms where Hs is the square of H and Ms is the square of M. The prices of cheese and milk in the market are $2 and $5 respectively. Assume that the cheese and milk markets are perfectly competitive. What output of cheese maximizes profits?
Select one:
a.2
b.5
c.2.5
d.None
e.10
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