4. A flour-producing firm owns two plants. Each plant has a production function given by Q₁ = (K;L;) ½ for i=1,2. Plant 1 owns 25 units of K and plant 2 owns 100 units. The prices of K and L are both $1. a. In the short run K; is fixed. If output is 200, then how much should be produced in each plant? b. What are the short-run TC, MC, and AC functions for the FIRM?
4. A flour-producing firm owns two plants. Each plant has a production function given by Q₁ = (K;L;) ½ for i=1,2. Plant 1 owns 25 units of K and plant 2 owns 100 units. The prices of K and L are both $1. a. In the short run K; is fixed. If output is 200, then how much should be produced in each plant? b. What are the short-run TC, MC, and AC functions for the FIRM?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![### Problem Statement
A flour-producing firm owns two plants. Each plant has a production function given by:
\[ Q_i = (K_i L_i)^{1/2} \text{ for } i = 1, 2. \]
- **Plant 1** owns 25 units of \( K \).
- **Plant 2** owns 100 units of \( K \).
- The prices of \( K \) and \( L \) are both $1.
#### Questions:
a. In the short run, \( K_i \) is fixed. If output is 200, then how much should be produced in each plant?
b. What are the short-run TC (Total Cost), MC (Marginal Cost), and AC (Average Cost) functions for the firm?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F93a68195-220f-4ec8-9550-c1fbe71990b2%2F768a52ff-d17d-4856-aa40-fd245e80e1b5%2Fg7a7fj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Problem Statement
A flour-producing firm owns two plants. Each plant has a production function given by:
\[ Q_i = (K_i L_i)^{1/2} \text{ for } i = 1, 2. \]
- **Plant 1** owns 25 units of \( K \).
- **Plant 2** owns 100 units of \( K \).
- The prices of \( K \) and \( L \) are both $1.
#### Questions:
a. In the short run, \( K_i \) is fixed. If output is 200, then how much should be produced in each plant?
b. What are the short-run TC (Total Cost), MC (Marginal Cost), and AC (Average Cost) functions for the firm?
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