Question
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q,
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2.
a. What is the profit-maximizing output for plant 1 and plant 2?
b.What price should be charged to maximize revenues?
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
