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What price should be charged in order to maximize revenues

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

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Solution Preview :

Prepared by a verified Expert

Managerial Economics: What price should be charged in order to maximize revenues

Reference No:- TGS01751434

Have a Question? (oR Write a Review)

Recent Questions Asked Managerial Economics

Q : Wip for direct materials and conversion costs

Q : Create business communication report

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Q : What price should be charged in order to maximize revenues

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Solution Preview :

Prepared by a verified Expert

Managerial Economics: What price should be charged in order to maximize revenues

Reference No:- TGS01751434

Recent Questions Asked Managerial Economics

Q : Wip for direct materials and conversion costs

Q : Create business communication report

Q : Explain the relationships between atc and mtc

Q : Conflict management styles

Q : What price should be charged in order to maximize revenues

Q : Economic order quantity and quantity discounts

Q : Organizational growth and expansion

Q : Show the productivity change in loaves per dollar

Q : National debt as a percentage of gdp

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