A Firm Has Two Plants That Produce Identical Output The Cost Functions Are C4 377q 10 0 59 And Cy 3779 12q 1 (64.08 KiB) Viewed 23 times
A Firm Has Two Plants That Produce Identical Output The Cost Functions Are C4 377q 10 0 59 And Cy 3779 12q 2 (56.79 KiB) Viewed 23 times
A firm has two plants that produce identical output. The cost functions are C4 = 377q -10? +0.59 + and Cy = 3779 - 12q +1.09 First, note that if AC, = 377 - 10q+0.5qthen dAC, = - 10 + 2(0.5) da Similarly, if AC= 377 - 12q + 1.09 then dAC2 = - 12+2(1.09 da At what output level does the average cost curve of each plant reach its minimum? The first plant reaches minimum average cost at 10 units of output Enter a numeric response using an integer)
First, note that if AC, = 377 - 10q+0.5q?, then + h DAC1 = - 10 + 2(0.5). da Similarly, if AC = 377 - 12q +1.09? then DAC2 = - 12+2(1.09 da At what output level does the average cost curve of each plant reach its minimum? The first plant reaches minimum average cost at 10 units of output. (Enter a numeric response usi an integer) The second plant reaches minimum average cost at units of output (Enter a numeric response using an integer)
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