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the firm can sell as much also sell up to 1500 units or mould the firm produce at ea

the firm can sell as much also sell up to 1500 units or mould the firm produce at ea

Algebra for College Students
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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Question 13, continued (b). domestic market, but the firm can also sell up to 1500 units on a foreign market at a higher price of p = 4 per unit. How much should the firm produce at each plant and how much should Assume again that the firm can sell as much as it likes at p = 2.5 on its it sell in each market?
Transcribed Image Text:Question 13, continued (b). domestic market, but the firm can also sell up to 1500 units on a foreign market at a higher price of p = 4 per unit. How much should the firm produce at each plant and how much should Assume again that the firm can sell as much as it likes at p = 2.5 on its it sell in each market?
A firm has three plants from which it can produce. Each plant has Question 13 a capacity of 1000 units. The most efficient plant (plant A) has a total opportunity cost of production equal to Ca(qa) = qa for producing qa < 1000 units; plant B has a total opportunity cost of production equal to C,(qb) = 2q, for producing < 1000 units; and the most costly plant has a total opportunity cost of production equal to C(q.) = 39. for producing q. < 1000 units. Thus, the firm's total output across the three plants is q = qa + q6 + qc < 3000. (a). How much should the firm produce at each plant? Assume that the firm is a price taker and can sell as much as it likes at p= 2.5.
Transcribed Image Text:A firm has three plants from which it can produce. Each plant has Question 13 a capacity of 1000 units. The most efficient plant (plant A) has a total opportunity cost of production equal to Ca(qa) = qa for producing qa < 1000 units; plant B has a total opportunity cost of production equal to C,(qb) = 2q, for producing < 1000 units; and the most costly plant has a total opportunity cost of production equal to C(q.) = 39. for producing q. < 1000 units. Thus, the firm's total output across the three plants is q = qa + q6 + qc < 3000. (a). How much should the firm produce at each plant? Assume that the firm is a price taker and can sell as much as it likes at p= 2.5.
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