A firm has two plants that produce identical output. The cost functions are : C 1 = 10q – 4q 2 + q 3 and C 2 = 10q – 2q 2 + q 3 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 plan?

A firm has two plants that produce identical output. The cost functions are : C 1 = 10q – 4q 2 + q 3 and C 2 = 10q – 2q 2 + q 3 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 plan?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 18PAE

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