A firm has two plants that produce identical output. The cost functions are C₁ = 129₁-12 (9₁)² + (9₁) ³ and C₂=1292-8 (92)2 + (92₂) ³. At what output level does the average cost curve of each plant reach its minimum? If the firm wants to produce 20 units of output, how much should it produce in each plant? Let q₁ be the output at plant 1 and q2 be the output at plant 2. Average cost at plant 1 reaches a minimum at (Enter your response rounded to one decimal place.) Average cost at plant 2 reaches a minimum at 9₁ = unit(s). and 92 (Enter your response rounded to one decimal place.) If the firm wants to produce 20 units of output, it should produce 91 = 92 (Enter your responses rounded to two decimal places.) unit(s). = units at plant 1 units at plant 2.

A firm has two plants that produce identical output. The cost functions are C₁ = 129₁-12 (9₁)² + (9₁) ³ and C₂=1292-8 (92)2 + (92₂) ³. At what output level does the average cost curve of each plant reach its minimum? If the firm wants to produce 20 units of output, how much should it produce in each plant? Let q₁ be the output at plant 1 and q2 be the output at plant 2. Average cost at plant 1 reaches a minimum at (Enter your response rounded to one decimal place.) Average cost at plant 2 reaches a minimum at 9₁ = unit(s). and 92 (Enter your response rounded to one decimal place.) If the firm wants to produce 20 units of output, it should produce 91 = 92 (Enter your responses rounded to two decimal places.) unit(s). = units at plant 1 units at plant 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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