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1. A firm has an inventory of 13 units, and currently has contracts to supply 30 units. To produce more units it has two plants
1. A firm has an inventory of 13 units, and currently has contracts to supply 30 units. To produce more units it has two plants with costs C1(q1) = q^2+ 4q, C2(q2) = 2q^2. (a) To fulfill all of their current contracts at the lowest cost, how should it allocate produc-tion? (b) How does your answer change if their inventory was instead 17
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