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A Firm Produced Widgets in Two Plants

question 73

Essay

A firm produced widgets in two plants. In the first plant its total cost is TC1 = y12 + 20y1 + 4 and in the second
TC2 = 40y2 + 24..
i)What is the marginal product in plant 1? What about plant 2?
ii)If the firm wants to produce 100 widgets, how should the production be allocated between the two plants.


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