Question: Two firms 1 and 2 are using both capital ( K ) and labour ( L ) to produce identical products. They have different technologies

Two firms 1 and 2 are using both capital (K) and labour (L) to produce identical products. They have different technologies in their productions, which are described as the following production functions:

f1(K1,L1) =aK1+bL1;f2(K2,L2) =min{aK2,bL2},

Use suitable analytical tools (either algebraic or graphic) to show that, if the minimal total costs are the same for both firms (i.e.,TC1=TC2), then Firm 1's output levelq1is at least twice of Firm 2's output levelq2, (i.e.,q12q2).

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