You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 20 ? Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 2 and MC2 = 2Q2. What is the profit-maximizing price that the firm should charge?
A. $11
B. $12
C. $9
D. $8
Answer: A
Economics
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