Question
A rm that produces standing desks faces the following average total cost function: ATC = Q + 10 + 300/Q . The rm decides to
A rm that produces standing desks faces the following average total cost
function: ATC = Q + 10 + 300/Q . The rm decides to produce Q=100 standing desks.
Should they produce the 100 desks in one factory or in two factories? Note: assume that
each potential factory is identical, with the cost function specified above.
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Principles Of Economics
Authors: Robert H. Frank, Ben Bernanke Professor, Kate Antonovics, Ori Heffetz
6th Edition
0078021855, 9780078021855
