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Profit-maximizing levels of output for two goods

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A firm sells two goods (X and Y) that are related in consumption. The estimated inverse demand and cost functions are:

PX = 105 - 0.5QX - 0.75QY

PY = 120 - QY - 0.5QX

MCX = 10 + 0.25QX

MCY = 16 + 0.5QX

What are the profit-maximizing levels of output for the two goods? 

  • QX = 6, QY = 3
  • QX =40, QY = 40
  • QX = 58, QY = 30
  • QX = 240, QY = 270
  • none of the above

Reference no: EM132193947

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