TBChap008 - Chapter 08 Competing Across Borders Multiple...

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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
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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
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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?
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