Question: Firm 1 produces output X with a cost function C1 (X ) = X2 Firm 2 produces output Y with a cost function C2 (X,

Firm 1 produces output X with a cost function C1 (X ) = X2 Firm 2 produces output Y with a cost function C2 (X, Y) = Y2 200 - 2 X. Both firms face competitive markets. The competitive price of X is 7 and the competitive price of Y is $5. There is no entry or exit into this market. What is the socially optimal production of X

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