1. A firm produces output in two plants. Marginal Production Costs for the two plants are given in the table below. Use this data to answer questions the other parts of this question. 1b. Calculate Total Production Cost for both plants using given plant output. Write your answers as a row order in order of plant output: plant 1, plant 2, so for example lets say total production costs of zero output is 30 for plant 1 and 45 for plant 2, so final answer would be 0: 30, 45; 1:,; 2:,; likewise until 10. 1c. What is the cheapest way to produce 8 units? Explain how you got your answer. \table[[, Marginal Production Costs,Total Production Costs], [Plant Output, Plant 1, Plant 2, Plant 1, Plant 2], [0, So, SO, S (), S 01. [1, $30, $10, $(), $()], [2, $60, $20, 50), $0], [3, $80, $30, S (), $()], [4, $90, $40, $( ), S()], [5, $95, $50, $(), $()], [6, $99, $60, $(), S0],[7,$100, $70,S(), 0)], [8, $104, $80, S (), $()], [9, $105, $90, $(), $()], [10, $115, $100, $(), $0) Marginal Production Costs Total Production Costs Plant Output Plant 1 Plant 2 Plant 1 Plant 2 0 SO SO $ () $ () 1 $30 $10 $ ( ) $ ( ) 2 $60 $20 S () S ( ) 3 $80 $30 $ () $ ( ) 4 $90 $40 $ () $ () 5 $95 $50 $ ( ) S ( ) 6 $99 $60 $ ( ) $ () 7 $100 $70 S () S () 8 $104 $80 $ () S() 9 $105 $90 $ () S() 10 $115 $100 $ ( ) S()
1. A firm produces output in two plants. Marginal Production Costs for the two plants are given in the table below. Use this data to answer questions the other parts of this question. 1b. Calculate Total Production Cost for both plants using given plant output. Write your answers as a row order in order of plant output: plant 1, plant 2, so for example lets say total production costs of zero output is 30 for plant 1 and 45 for plant 2, so final answer would be 0: 30, 45; 1:,; 2:,; likewise until 10. 1c. What is the cheapest way to produce 8 units? Explain how you got your answer. \table[[, Marginal Production Costs,Total Production Costs], [Plant Output, Plant 1, Plant 2, Plant 1, Plant 2], [0, So, SO, S (), S 01. [1, $30, $10, $(), $()], [2, $60, $20, 50), $0], [3, $80, $30, S (), $()], [4, $90, $40, $( ), S()], [5, $95, $50, $(), $()], [6, $99, $60, $(), S0],[7,$100, $70,S(), 0)], [8, $104, $80, S (), $()], [9, $105, $90, $(), $()], [10, $115, $100, $(), $0) Marginal Production Costs Total Production Costs Plant Output Plant 1 Plant 2 Plant 1 Plant 2 0 SO SO $ () $ () 1 $30 $10 $ ( ) $ ( ) 2 $60 $20 S () S ( ) 3 $80 $30 $ () $ ( ) 4 $90 $40 $ () $ () 5 $95 $50 $ ( ) S ( ) 6 $99 $60 $ ( ) $ () 7 $100 $70 S () S () 8 $104 $80 $ () S() 9 $105 $90 $ () S() 10 $115 $100 $ ( ) S()
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![1. A firm produces output in two plants. Marginal Production Costs for the two plants are given in the table below. Use
this data to answer questions the other parts of this question.
1b. Calculate Total Production Cost for both plants using given plant output. Write your answers as a row order in order
of plant output: plant 1, plant 2, so for example lets say total production costs of zero output is 30 for plant 1 and 45 for
plant 2, so final answer would be 0: 30, 45; 1:,; 2:,; likewise until 10.
1c. What is the cheapest way to produce 8 units? Explain how you got your answer.
\table[[, Marginal Production Costs,Total Production Costs], [Plant Output, Plant 1, Plant 2, Plant 1, Plant 2], [0, So, SO, S (), S
01. [1, $30, $10, $(), $()], [2, $60, $20, 50), $0], [3, $80, $30, S (), $()], [4, $90, $40, $( ), S()], [5, $95, $50, $(), $()], [6, $99, $60, $(),
S0],[7,$100, $70,S(), 0)], [8, $104, $80, S (), $()], [9, $105, $90, $(), $()], [10, $115, $100, $(), $0)
Marginal Production Costs
Total Production Costs
Plant Output
Plant 1
Plant 2
Plant 1
Plant 2
0
SO
SO
$ ()
$ ()
1
$30
$10
$ ( )
$ ( )
2
$60
$20
S ()
S ( )
3
$80
$30
$ ()
$ ( )
4
$90
$40
$ ()
$ ()
5
$95
$50
$ ( )
S ( )
6
$99
$60
$ ( )
$ ()
7
$100
$70
S ()
S ()
8
$104
$80
$ ()
S()
9
$105
$90
$ ()
S()
10
$115
$100
$ ( )
S()](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f43c585-c4e4-450e-8106-6de5a9fdb9a4%2Fe7caed6c-be44-4e5e-8ebc-5bfe4ecf4f64%2Fjc8gysc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. A firm produces output in two plants. Marginal Production Costs for the two plants are given in the table below. Use
this data to answer questions the other parts of this question.
1b. Calculate Total Production Cost for both plants using given plant output. Write your answers as a row order in order
of plant output: plant 1, plant 2, so for example lets say total production costs of zero output is 30 for plant 1 and 45 for
plant 2, so final answer would be 0: 30, 45; 1:,; 2:,; likewise until 10.
1c. What is the cheapest way to produce 8 units? Explain how you got your answer.
\table[[, Marginal Production Costs,Total Production Costs], [Plant Output, Plant 1, Plant 2, Plant 1, Plant 2], [0, So, SO, S (), S
01. [1, $30, $10, $(), $()], [2, $60, $20, 50), $0], [3, $80, $30, S (), $()], [4, $90, $40, $( ), S()], [5, $95, $50, $(), $()], [6, $99, $60, $(),
S0],[7,$100, $70,S(), 0)], [8, $104, $80, S (), $()], [9, $105, $90, $(), $()], [10, $115, $100, $(), $0)
Marginal Production Costs
Total Production Costs
Plant Output
Plant 1
Plant 2
Plant 1
Plant 2
0
SO
SO
$ ()
$ ()
1
$30
$10
$ ( )
$ ( )
2
$60
$20
S ()
S ( )
3
$80
$30
$ ()
$ ( )
4
$90
$40
$ ()
$ ()
5
$95
$50
$ ( )
S ( )
6
$99
$60
$ ( )
$ ()
7
$100
$70
S ()
S ()
8
$104
$80
$ ()
S()
9
$105
$90
$ ()
S()
10
$115
$100
$ ( )
S()
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