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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 = 120 − 6Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 2Q1 and MC2 = 4Q2.

Please explain and show all steps in deriving the answers, thank you!

a. How much output should be produced in plant 1 in order to maximize profits? Answer: 6

b. What price should be charged to maximize profits? Answer: 66

c. What price should be charged in order to maximize revenues? Answer: 60

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