Question
A company produces two items, A and B. q is the number of units produced from item A, qB is the number of units produced
A company produces two items, A and B.
q is the number of units produced from item A,
qB is the number of units produced of item B.
The joint cost function is: C = 8qA(qA + qB) + 2000
Find the marginal cost with respect to qA and q when q = 61 and q = 60
Interpret each of the marginal costs.
Which item do you suggest the company increase production of at this time?
Justify your answer.
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
