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. How much output should be produced in plant 1 in order to maximize profits?

The owners of professional sports teams, such as those in the NFL, make collective decisions and agreements about sharing merchandising and television revenue, adding or disallowing expansion teams, and the scheduling of games. These decisions and agreements reflect that of a

a. monopoly b. cartel c. conglomerate firm d. vertical merger e. competitive industry

Which of the following is not one of the four principles of individual decision making?

a. People face trade-offs. b. Trade can make everyone better off. c. People respond to incentives. d. Rational people think at the margin.