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You are the manager of a firm that produces output in two plants. The demand for...

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 costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2.

a. How much output should be produced in plant 1 and plant 2 in order to maximize profits? 1 and 1.5 units respectively

b. What price should be charged to maximize profits? $40.5

c. What price should be charged in order to maximize revenues? $39

Please show and explain each step in deriving the answers. Thanks!

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