Suppose you own a computer firm that has two production facilities; one is more modern than the

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Suppose you own a computer firm that has two production facilities; one is more modern than the other and production takes place at lower cost there than at the second facility. Suppose you budget $1 million for production and you want to produce the greatest number of computers for that expenditure. You wind up producing 700 computers at the first facility and 300 at the sec- ond. Suppose instead you had decided to produce 1,000 computers at the least total cost. Would your production plans be the same or different? What rule would determine how much to produce in each facility, for each strategy?

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Principles Of Microeconomics

ISBN: 9780812224177

1st Edition

Authors: Eugene Silberberg And Gregory Ellis

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