4. A flour-producing firm owns two plants. Each plant has a production function given by Q₁ = (K;L;) ½ for i=1,2. Plant 1 owns 25 units of K and plant 2 owns 100 units. The prices of K and L are both $1. a. In the short run K; is fixed. If output is 200, then how much should be produced in each plant? b. What are the short-run TC, MC, and AC functions for the FIRM?

4. A flour-producing firm owns two plants. Each plant has a production function given by Q₁ = (K;L;) ½ for i=1,2. Plant 1 owns 25 units of K and plant 2 owns 100 units. The prices of K and L are both $1. a. In the short run K; is fixed. If output is 200, then how much should be produced in each plant? b. What are the short-run TC, MC, and AC functions for the FIRM?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.2P

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