Suppose a firm wants to produce 50 units of output at minimum cost and it has three factories with the following marginal cost functions MC;(y1) = 40 MC2(y2) = 4y2 MC3(y3) = 8y3 How should the firm allocate production across their three factories? (Note: if you can't figure out how to do this for three factories, you can do it for factories 2 and 3 for part marks)

Suppose a firm wants to produce 50 units of output at minimum cost and it has three factories with the following marginal cost functions MC;(y1) = 40 MC2(y2) = 4y2 MC3(y3) = 8y3 How should the firm allocate production across their three factories? (Note: if you can't figure out how to do this for three factories, you can do it for factories 2 and 3 for part marks)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 16E

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