A firm has two plants that produce identical output. The costs functions are C,=10g-4q² + q³ MG,=10-89 + 39 and C,=10q-2q + q³ 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 plant?
A firm has two plants that produce identical output. The costs functions are C,=10g-4q² + q³ MG,=10-89 + 39 and C,=10q-2q + q³ 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 plant?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 2SQ
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![A firm has two plants that produce identical output. The costs functions are
C,=10q-4q? + q³
MC,=10-8g + 3q
and
C2=10q-2q² + q³
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 plant?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f8ea82e-0162-4b82-ab00-bae6e17c84f7%2F4b16deec-f398-47a6-8486-0d3d91393692%2Ft9tkafk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A firm has two plants that produce identical output. The costs functions are
C,=10q-4q? + q³
MC,=10-8g + 3q
and
C2=10q-2q² + q³
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 plant?
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