Suppose a firm wants to produce 50 units of output at minimum cost and it has three factories with the following marginal cost functions MC;(y1) = 40 MC2(y2) = 4y2 MC3(y3) = 8y3 How should the firm allocate production across their three factories? (Note: if you can't figure out how to do this for three factories, you can do it for factories 2 and 3 for part marks)

Suppose a firm wants to produce 50 units of output at minimum cost and it has three factories with the following marginal cost functions MC;(y1) = 40 MC2(y2) = 4y2 MC3(y3) = 8y3 How should the firm allocate production across their three factories? (Note: if you can't figure out how to do this for three factories, you can do it for factories 2 and 3 for part marks)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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