Solved

A Firm Produced Widgets in Two Plants

Question 92

Essay

A firm produced widgets in two plants. In the first plant its total cost is TC1 = y12 + 20y1 + 4 and in the second
TC2 = 40y2 + 24..
i)What is the marginal product in plant 1? What about plant 2?
ii)If the firm wants to produce 100 widgets, how should the production be allocated between the two plants.

Correct Answer:

verifed

Verified

i)MC1 = 2y1 + 20; MC2 = 40...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents