A firm produces output at two plants that are at different locations but are otherwise identical. The firm's cost function is C(q) = 5.3√q, where q is the quantity produced at the plant. To satisfy demand at the current market price, the firm needs to produce a total of 202,500 units of output. How should the firm divide production between the two plants in order to minimize the cost of production? Is it more profitable to produce all 202,500 units at one plant?

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The Answer of A firm produces output at two plants that are at different locations but are otherwise identical. The firm's cost function is C(q) = 5.3√q, where q is the quantity produced at the plant. To satisfy demand at the current market price, the firm needs to produce a total of 202,500 units of output. How should the firm divide production between the two plants in order to minimize the cost of production? Is it more profitable to produce all 202,500 units at one plant?

A Firm Produces Output at Two Plants That Are at Different