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Economics, Cost-Benefit Analysis
Year 4

What is the correct price?


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 cost associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. What price should be charged in order to maximize revenues?
A. $39
B. $47
C. $52
D. $56

Please show work, I am having problem the formulas.

By OTA:  Shrikant Kanitkar, MEng

OTA Rating:  4.8/5

Your Price:  $2.19  (original value ~$3.99)

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