Distribute the chemical at marketing marginal costs

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Reference no: EM131250695

A chemical company can produce Q units of a chemical H, with marginal costs of MC = 9 + Q, and can distribute the chemical at marketing marginal costs of MC = 1. The demand for H is given by P = 30 - 1.5Q. If an external market exists where H can be bought or sold without marketing expenses for $13, how much H should the firm produce?

A. 0 units

B. 4 units

C. 5 units

D. 7 units

E. 10 units

Reference no: EM131250695

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