Asked by
Jillian Campos
on Oct 14, 2024
Verified
A firm has two factories.One factory has the cost function c1(y1) 2y21 90 and the other has the cost function c2(y2) 6y22 40.If the firm wishes to produce a total of 32 units as cheaply as possible, how many units will be produced in the second factory?
A) 7
B) 2
C) 8
D) 14
E) None of the above.
Cost Function
A mathematical expression that describes how production costs change with changes in the level of output.
Second Factory
An additional manufacturing facility that a company may open or acquire to increase production capacity.
- Acquire knowledge about how the cost function correlates with output and input elements.
- Determine the most favorable production quantities and input pairings for expense curtailment.
Verified Answer
BV
Learning Objectives
- Acquire knowledge about how the cost function correlates with output and input elements.
- Determine the most favorable production quantities and input pairings for expense curtailment.