Consider a Firm with Two Technologies to Choose Between When

question 4

Essay

Consider a firm with two technologies to choose between when producing output.The cost function when using technology 1 is given by:
c₁(q)= 3600 + 65q + 36q²
The cost function when using technology 2 is given by:
c₂(q)= 900 + 900q +q²
ᴬˢˢᵘᵐᵉ ᵗʰᵃᵗ ᵗʰᵉ ᶠᶦʳᵐ ᶜᵃⁿ ᵒⁿˡʸ ᶦᵐᵖˡᵉᵐᵉⁿᵗ ᵒⁿᵉ ᵒᶠ ᵗʰᵉ ᵗʷᵒ ᵗᵉᶜʰⁿᵒˡᵒᵍᶦᵉˢ ᵃᵗ ᵃ ᵗᶦᵐᵉ.
a.If the firm wishes to produce output at the lowest per-unit cost,which technology should it choose and how much output should it produce?
b.Which technology should the firm choose if it wishes to produce 15 units of output? What about 25 units of output?

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Definitions:

Kohlberg

Lawrence Kohlberg was a renowned psychologist famous for developing the stages of moral development theory.

Teachers

Educators responsible for imparting knowledge, fostering understanding, and promoting intellectual growth among students.

Obey

To follow the commands, rules, or instructions given by someone in authority.

Preconventional Morality

The first level of Kohlberg's stages of moral development, where moral reasoning is based primarily on consequences and individual interests.