Determine profit maximizing allocation of output


A firm with two plants, A and B, has the following estimated demand and marginal cost functions:

Qd=120-10p
MCa=4+.2Qa
MCb=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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Microeconomics: Determine profit maximizing allocation of output
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