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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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