A firm has two production plants. The cost function of plant 1 is where Q1 is the
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where Q1 is the number of units of output produced in plant 1.
The cost function of plant 2 is
where Q2 is the number of units of output produced in plant 2.
If the firm wants to produce Q total units of output, what is the allocation of production across the two plants that minimizes its cost?
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Q1 4Q5 Q2 Q5 Explanation The marginal cost in plant 1 is MC 1 10 2 Q 1 Th...View the full answer
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