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.
a. If the firm wants to produce Q total units of output, what fraction of Q will a cost minimizing firm produce in plant 1?
b. What is the firm's total cost as a function of Q?
c. Suppose the firm has an avoidable fixed cost of 10. What is its supply function?

Transcribed Image Text:

GQ) -1001 +0.5(Q,)2