Illustrate what price should be charged to maximize profits

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Q. A 3-year property class type equipment bought for $30,000 is being disposed of $20,000 at the end of three years. The company is at a 34% tax bracket. Compute the tax consequence, if any, for the corporation based on this equipment.

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

(1) Explain how much output should be produced in palnt 1 in order to maximize profits?

(2) Illustrate what price should be charged to maximize profits?

Reference no: EM1346913

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