A manufacturer of nne pens produces in two plants. The total cost of producing in the nrst plant is given by TC1 yỉ + 100. The total cost of producing in the second plant is given by TC, * + 200. In these cost functions, y1 corresponds to the number of pens produced in the first plant, and y2 corresponds to the number of pens produced in the second plant. Suppose the firm's marginal cost is $256. If the firm is minimizing costs, the firm must be producing pens.

A manufacturer of nne pens produces in two plants. The total cost of producing in the nrst plant is given by TC1 yỉ + 100. The total cost of producing in the second plant is given by TC, * + 200. In these cost functions, y1 corresponds to the number of pens produced in the first plant, and y2 corresponds to the number of pens produced in the second plant. Suppose the firm's marginal cost is $256. If the firm is minimizing costs, the firm must be producing pens.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.3: The Various Measures Of Cost

Problem 3QQ

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