Determine profit maximizing allocation of output
A firm with two plants, A and B, has the following estimated demand and marginal cost functions:
Qd=120-10pMCa=4+.2QaMCb=6+.10Qb
A) Determine the profit maximizing allocation of output between the two points.
B) What price should the firm set?
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A firm with two plants, A and B, has the following estimated demand and marginal cost functions: Determine the profit maximizing allocation of output between the two points.
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