A firm has two plants that produce identical output. The cost functions are : C 1 = 10q – 4q 2 + q 3 and C 2 = 10q – 2q 2 + q 3 a. At what output levels does the average cost curve of each plant reach its minimum? b. If the firm wants to produce four units of output, how much should it produce in each plan?
A firm has two plants that produce identical output. The cost functions are : C 1 = 10q – 4q 2 + q 3 and C 2 = 10q – 2q 2 + q 3 a. At what output levels does the average cost curve of each plant reach its minimum? b. If the firm wants to produce four units of output, how much should it produce in each plan?
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 18PAE
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A firm has two plants that produce identical output. The cost functions are : C 1 = 10q – 4q 2 + q 3 and C 2 = 10q – 2q 2 + q 3 a. At what output levels does the average cost curve of each plant reach its minimum? b. If the firm wants to produce four units of output, how much should it produce in each plan?
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