Question
A firm operates two plants. The total cost schedules for the plants are TC1 = 4*Q1 + .1*Q12 and TC2 = 2*Q2 + .1*Q22. The
A firm operates two plants. The total cost schedules for the plants are TC1 = 4*Q1 + .1*Q12 and TC2 = 2*Q2 + .1*Q22. The firm’s demand schedule is Q = 120 – 10*P or P = 12 - .1*Q. What is the profit maximizing output to be allocated to plant 1?
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Ans The total cost schedules for the plants are TC1 4Q1 01Q12 TC2 2Q2 01Q22 The ...
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
