If the entrepreneur wishes to minimize short-run total costs of widget production, how should output be allocated between the two firms? Why?

9. (13 points) An enterprising entrepreneur purchases two firms to produce widgets. Each firm produces an identical product, and each has a production function given by The firms differ, however, in the amount of capital equipment each has. In particular, firm I has ki = 25, whereas firm 2 has k2 = 100, Rental rates for k and I are given by W = v= $1