A Firm Has Two Plants, X and Y

question 28

Multiple Choice

A firm has two plants, X and Y. Suppose that the cost of producing x units at plant X is dollars and the cost of producing y units of the same product at plant Y is given by dollars. If the firm has an order for 3,000 units, how many should it produce at each plant to fill this order and minimize the cost of production? ​

• A)1,500 at plant X; 1,500 at plant Y
• B)2,500 at plant X; 500 at plant Y
• C)1,000 at plant X; 2,000 at plant Y
• D)3,000 at plant X; 0 at plant Y
• E)2,000 at plant X; 1,000 at plant Y