Question: Consider a firm with two technologies to choose when producing output. The cost function when using technology 1 is given by: C 1 ( q

Consider a firm with two technologies to choose when producing output. The cost function when using technology 1 is given by:

C1(q) = 3,600 + 65q + 36q2

The cost function when using technology 2 is given by:

C2(q) = 900 + 900q + q2

Assume that the firm can implement only one of the two technologies at a time.

a . If the firm wishes to produce output at the lowest per-unit cost, which technology should it choose and how much output should it produce?

b. Which technology should the firm choose if it wishes to produce 15 units of output? What about 25 units of output?

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