TBChap008

# TBChap008 - Chapter 08 Competing Across Borders Multiple...

This preview shows pages 1–4. Sign up to view the full content.

Chapter 08 Competing Across Borders Multiple Choice Questions 1. 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 = Q 1 + Q 2 . The marginal costs associated with producing in the two plants are MC 1 = 3Q 1 and MC 2 = 2Q 2 . How much output should be produced in plant 1 in order to maximize profits? A. 1 B. 2 C. 3 D. 4 2. 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 = Q 1 + Q 2 . The marginal costs associated with producing in the two plants are MC 1 = 3Q 1 and MC 2 = 2Q 2 . What price should be charged to maximize profits? 3. 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 = Q 1 + Q 2 . The marginal costs associated with producing in the two plants are MC 1 = 3Q 1 and MC 2 = 2Q 2 . What price should be charged in order to maximize revenues ? 8- 1 X

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
4. Which of the following is true under monopoly? 5. You are the manager of a firm that sells its product in a competitive market at a price of \$50. Your firm's cost function is C = 40 + 5Q 2 . The profit-maximizing output for your firm is: A. 4/5 . B. 10 . C. 5 . D. 45 . 6. You are the manager of a firm that sells its product in a competitive market at a price of \$50. Your firm's cost function is C = 40 + 5Q 2 . Your firm's maximum profits are: 7. You are the manager of a monopoly that faces a demand curve described by P = 230 - 20Q. Your costs are C = 5 + 30Q. The profit-maximizing output for your firm is: 8- 2 X
8. You are the manager of a monopoly that faces a demand curve described by P = 230 - 20Q. Your costs are C = 5 + 30Q. The profit-maximizing price is: 9. You are the manager of a monopoly that faces a demand curve described by P = 230 - 20Q. Your costs are C = 5 + 30Q. Your firm's maximum profits are: A. 495 . B. 475 . C. 480 . D. 415 . 10. You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 120 - 6Q, where Q = Q 1 + Q 2 . The marginal costs associated with producing in the two plants are MC 1 = 2Q 1 and MC 2 = 4Q 2 . How much output should be produced in plant 1 in order to maximize profits?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern