A firm has two plants that produce identical output. The cost functions are C 1 = 10q

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A firm has two plants that produce identical output. The cost functions are C₁ = 10q - 4q² + q³ and C₂ = 10q - 2q² + q³.

a. At what output level does the average cost curve of each plant reach its minimum?

b. If the firm wants to produce four units of output, how much should it produce in each plant?

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Microeconomics Theory and Applications with Calculus

ISBN: 978-0133019933

3rd edition

Authors: Jeffrey M. Perloff

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Question Posted: Sep 21, 2024 05:17 AM

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A firm has two plants that produce identical output. The cost functions are C 1 = 10q

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a You must set dACdq 0 for each firm...View the full answer

Microeconomics Theory and Applications with Calculus

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