Question: A firm manufactures a commodity at two different factories. The total cost of manufacturing depends on the quantities, q 1 and q 2 , supplied
A firm manufactures a commodity at two different factories. The total cost of manufacturing depends on the quantities, q1 and q2, supplied by each factory, and is expressed by the joint cost function,
C = f(q1, q2) = 2q21 + q1q2 + q22 + 500.
The company’s objective is to produce 200 units, while minimizing production costs. How many units should be supplied by each factory?
Step by Step Solution
3.44 Rating (154 Votes )
There are 3 Steps involved in it
We want to minimize C fq 1 q 2 2q 2 1 q 1 q 2 q 2 2 500 subject to ... View full answer
Get step-by-step solutions from verified subject matter experts
