MCe = 8qe + 2 MCf =16qf + 10 A.) Suppose that you are interested in minimizing the cost of producing a total of 13
Posted: Sun May 08, 2022 8:52 am
MCe = 8qe +
2 MCf
=16qf + 10
A.) Suppose that you are interested in minimizing the cost of
producing a total of 13 units.
How many units will be produced in factory e
and how many in factory f ?
What will be the total cost of production in your business for
the 13 units of the good?
B.) Assume now that your (above) business is subject to a social
policy that enforces production quota in the region where factory
f is located. You are supposed to
produce (of the order of 13 unites) 10 units of the good in factory
f.
What will be the total cost of production in your business?
What will be the loss/gain to your business from the policy?
2 MCf
=16qf + 10
A.) Suppose that you are interested in minimizing the cost of
producing a total of 13 units.
How many units will be produced in factory e
and how many in factory f ?
What will be the total cost of production in your business for
the 13 units of the good?
B.) Assume now that your (above) business is subject to a social
policy that enforces production quota in the region where factory
f is located. You are supposed to
produce (of the order of 13 unites) 10 units of the good in factory
f.
What will be the total cost of production in your business?
What will be the loss/gain to your business from the policy?