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Suppose that you are a manager for a firm like EBC Brakes, which manufactures brakes for automobiles and motorcycles. Your company has two plants, one

Suppose that you are a manager for a firm like EBC Brakes, which manufactures brakes for automobiles and motorcycles. Your company has two plants, one in the United States and the other in the United Kingdom. The following tables include the estimated demand and marginal revenue for your brakes, along with the marginal costs at the two factories.

  1. What quantity and price maximize your firm’s profit?

  2. What is the profit-maximizing number of brakes produced in the U.S. plant? In the U.K. plant?

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