Microeconomics 2nd Edition by Douglas Bernheim

Exercise 4

Suppose that John, April, and Tristan have two production plants for producing orange juice. They have a total of 850 crates of oranges. Plant 1's production function is F 1 ( O 2 ) = (1,000 × O 1 ) 0.5( O 1 ) 2 , while plant 2's is F 2 ( O 2 ) = (1,200 × O 2 ) × 0.5( O 2 ) 2 , where O 1 and O 2 are the number of crates of oranges assigned to each of the two plants. What is the best assignment of oranges between the two plants