QNO1 A multi plant monopoly operates two plants whose total cost schedules are

TC₁ = 8.5 + 0.03q²₁

TC2 = 5.2 + 0.04q²₂

If it faces the demand schedule p = 60 0.04qwhere q = q₁ + q₂, how much should it produce in each plant to maximize profits?

QNO2 A firm faces the production function Q = 6K^0.4L^0.5. If it can buy input K at 32 a unit and input L at 8 a unit, what combination of L and K should it use to maximize production if it is constrained by a fixed budget of 36,000? Explain the economic meaning of Lagrange Multiplier