A firm with two plants, A and B, has the following estimated demand and marginal cost functions:Qd = 120 - 10PMCA = 4 + (1 / 5)QAMCB = 6 + (1 / 10)QBHow should the firm allocate total output between the two plants in order to maximize profit?
A. produce 20 units in plant A, 20 units in plant B
B. produce 5 units in plant A, 10 units in plant B
C. produce 15 units in plant A, 10 units in plant B
D. produce 20 units in plant A, 25 units in plant B
E. none of the above
Answer: C
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