Dan is the owner of a price-taking company that manufactures sporting goods. One particular facility Dan owns produces baseball bats and baseball gloves. His cost function for baseball bats is CB(QB, QG) = 100QB + QB2 + QBQG and the marginal cost is MCB = 100 + 2QB + QG, where QB is the output level for bats and QG is the output level for gloves. Dan's cost function for baseball gloves is CG(QB, QG) = 50QG + QG2 + QGQB, and the marginal cost is MCG = 50 + 2QG + QB. The price of a baseball bat is $240 and the price of a baseball glove is $150. If Dan were to shut down his production of bats and only produce gloves, what would be his profit-maximizing sales quantity of gloves?
A. 20
B. 25
C. 30
D. 50
D. 50
Economics
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Ross earns $60 each day. He spends this entire money either on movies or on games. The price of a movie ticket is $15, and the price of a game is $30 . Which of the following consumption bundles can Ross afford, given his income?
a. 5 movies and 2 games b. 2 movies and 1 game c. 3 movies and 1 games d. 0 movies and 3 games
Economics
If inventories are being depleted, firms may respond by cutting prices.
Answer the following statement true (T) or false (F)
Economics