You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 120 ? 6Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 2Q1 and MC2 = 4Q2. How much output should be produced in plant 1 in order to maximize profits?
A. 6
B. 12
C. 3
D. 9
Answer: A
You might also like to view...
The above figure shows the market for pizza. Which figure shows the effect of a decrease in the price of a hamburger, which for consumers is a substitute for pizza?
A) Figure A B) Figure B C) Figure D D) Figures B and C
What are in-kind transfers, and why are they more target-efficient than cash transfers?
What will be an ideal response?
A person tends to be ______________ likely to lose her temper with a boss than with a friend because the opportunity cost of losing her temper with her boss tends to be _____________ than the opportunity cost of losing her temper with her friend
A) less; higher B) more; higher C) less; lower D) more; lower
Figure 10-18
Beginning from a point of short-run equilibrium at point E2 in , the economy's movement to a new position of long-run equilibrium from that point would best be described as
a.
a movement along the AD2 curve with a shift in the SRAS1 curve to SRAS2.
b.
a movement along the SRAS2 curve with a shift in the AD2 curve.
c.
a shift in the LRAS curve to an intersection at E3.
d.
no shift of any kind.