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A rancher sells hides and beef. The two goods are assumed to be jointly produced in fixed proportions. The marginal cost equation for the beef-hide product package is given by MC = 30 + 5Q The demand and marginal revenue equations for the two products are: BEEF HIDES P = 60 – 1Q P = 80 – 4Q MR = 60 – 2Q MR = 80 – 4Q What prices should be charged for beef and hides? How many units of the product package should be produced?
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