A firm has two plants that produce identical output. The cost functions are C1 = 10q -

Question:

A firm has two plants that produce identical output. The cost functions are C1 = 10q - 4q2 + q3 and C2 = 10q - 2q2 + q3.
a. At what output level 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?