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?

Survey Of Economics
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ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
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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?
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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