A Firm Has Two Factories

question 29

Multiple Choice

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.

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