A company produces two items, A and B. q is the number of units produced from...

 

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A company produces two items, A and B. qд is the number of units produced from item A, qB is the number of units produced of item B. The joint cost function is: C = 8qA√(qA + qB) + 2000 Find the marginal cost with respect to qA and qв when q = 61 and qB = 60 Interpret each of the marginal costs. Which item do you suggest the company increase production of at this time? Justify your answer. A company produces two items, A and B. qд is the number of units produced from item A, qB is the number of units produced of item B. The joint cost function is: C = 8qA√(qA + qB) + 2000 Find the marginal cost with respect to qA and qв when q = 61 and qB = 60 Interpret each of the marginal costs. Which item do you suggest the company increase production of at this time? Justify your answer.

Answer rating: 100% (QA)

For q 61 and qB 60 we have C 8qAqA qB 2000 Differentiating with respect to qA we have MCqA 8qAqB ... View the full answer