Question: A firm has two production plants. The cost function of plant 1 is where Q1 is the number of units of output produced in plant

A firm has two production plants. The cost function of plant 1 is

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?

C2(02) 1002 40)

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Q1 4Q5 Q2 Q5 Explanation The marginal cost in plant 1 is MC 1 10 2 Q 1 Th... View full answer

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