Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics and Business Strategy

Authors: Michael R. baye

7th Edition

978-0073375960, 71267441, 73375969, 978-0071267441

More Books

Students also viewed these Economics questions

Question

Where do emotions come from? What function do they serve?

Answered: 1 week ago