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. A firm chooses between two technologies for a new product line. Technology 1 has the total cost function: C1(q) = 50 + 10q +
. A firm chooses between two technologies for a new product line. Technology 1 has the total cost function: C1(q) = 50 + 10q + 2q 2 . Technology 2 has the total cost function: C2(q) = 20 + 10q + 3q 2 . (a) Which technology is more efficient (less costly) if the expected output is very low, say, 1 unit? (b) What technology is more efficient (less costly) if the expected output is very high, say, 1000 units? NOTE: Explain your answers without numeric calculations of costs. Answers based on numeric calculations will be severely penalized.
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