A firm manufactures a commodity at two differentfactories, Factory X and Factory Y. The total cost (indollars) of manufacturing depends on thequantities, x and y produced at each factory,respectively, and is expressed by the joint costfunction:C(x, y)1x? + xy + 8y² + 700A) If the company's objective is to produce 1,800units per month while minimizing the total monthlycost of production, how many units should beproduced at each factory? (Round your answer towhole units, i.e, no decimal places.)To minimize costs, the company should produce:at Factory X andat Factory YB) For this combination of units, their minimal costswill bedollars. (Do notenter any commas in your answer.)

C(x,y) =x2 + xy + 8y2 + 700x +y = 1800

A firm manufactures a commodity at two different factories, Factory X and Factory Y. The total cost (in dollars) of manufacturing depends on the quantities, x and y produced at each factory, respectively, and is expressed by the joint cost function:

A firm manufactures a commodity at two different factories, Factory X and Factory Y. The total cost (in dollars) of manufacturing depends on the quantities, x and y produced at each factory, respectively, and is expressed by the joint cost function:

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 5E

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Question

100%

A firm manufactures a commodity at two different
factories, Factory X and Factory Y. The total cost (in
dollars) of manufacturing depends on the
quantities, x and y produced at each factory,
respectively, and is expressed by the joint cost
function:
C(x, y)
1x? + xy + 8y² + 700
A) If the company's objective is to produce 1,800
units per month while minimizing the total monthly
cost of production, how many units should be
produced at each factory? (Round your answer to
whole units, i.e, no decimal places.)
To minimize costs, the company should produce:
at Factory X and
at Factory Y
B) For this combination of units, their minimal costs
will be
dollars. (Do not
enter any commas in your answer.)

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