[solution] »

A firm is planning to build one of two types of plants. The short-run total cost of Plant A isCA

Description

Answer Download

The Question

A firm is planning to build one of two types of plants. The short-run total cost of Plant A isCA = 80+2QA+0.5QA2 while the short-run total cost for Plant B is CB=50+QB2.(a) (3 points) Determine the marginal cost functions for each of the 2 plants, and plot themin one graph.(b) (4 points) If an output of 8 units is planned, which plant should be built? How large ofan output is required to justify building Plant A?(c) (3 points) Suppose that the firm already has built both plants. If planned output issufficiently large, the firm should use both facilities, and just one (which one?) if the plannedoutput is sufficiently small. Explain why.(d) (5 points) Suppose planned production is 22 units. How should the firm divide theoutput between the two plants so as to minimize the overall expense of production?

 

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Oct 14, 2020

EXPERT

Tutor

ANSWER RATING

BEST TUTORS

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

• As a reference for in-depth understanding of the subject.
• As a source of ideas / reasoning for your own research (if properly referenced)
• For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

STUCK WITH YOUR PAPER?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.