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    Microeconomics: Maximize Revenues

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    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

    Revenue depends only upon the price and quantity sold.

    Q = ...

    Solution Summary

    This solution provides simple step-by-step calculations for determining the marginal revenue and optimum price and quantity.