A firm has two factories characterized by the following total cost functions: F1(y1)=3y², F2(y2) = y² a) In which firm is the marginal production cost are lower? b) What shares of the output should be produced in firm 1 and firm 2, if the firm minimizes total production costs? c) Derive the total cost function of production for this firm.

A firm has two factories characterized by the following total cost functions: F1(y1)=3y², F2(y2) = y² a) In which firm is the marginal production cost are lower? b) What shares of the output should be produced in firm 1 and firm 2, if the firm minimizes total production costs? c) Derive the total cost function of production for this firm.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.3P

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