A firm has two factories. Factory 1 has the cost function c (s)- +90. The marginal cost for factory 1 is mc (1) 2y and factory 2 has the cost function c₂ (va) - 2y +10. Marginal cost for factory 2 Is mca (1/2) = 4y2 If the firm wishes to produce a total of 60 units as cheaply as possible, how many units will be produced in the second factory? 12 40 O 20 48 O None of the above

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.4P
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A firm has two factories. Factory 1 has the cost function c (1)
+90. The marginal cost for factory 1
-
is mc (1/1) = 2y, and factory 2 has the cost function c₂ (₂) = 2y +10. Marginal cost for factory 2 is
mca (1/2) = 4y2 If the firm wishes to produce a total of 60 units as cheaply as possible, how many units
will be produced in the second factory?
0 12
40
20
48
O None of the above
Transcribed Image Text:A firm has two factories. Factory 1 has the cost function c (1) +90. The marginal cost for factory 1 - is mc (1/1) = 2y, and factory 2 has the cost function c₂ (₂) = 2y +10. Marginal cost for factory 2 is mca (1/2) = 4y2 If the firm wishes to produce a total of 60 units as cheaply as possible, how many units will be produced in the second factory? 0 12 40 20 48 O None of the above
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