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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
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