A Firm Has Two Factories

question 18

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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Definitions:

Sedimentary

relating to rock that has formed from sediment deposited by water, wind, or ice.

Igneous

Refers to rocks or minerals that solidified from molten or partly molten material, indicative of volcanic processes.

Sediment

Grains and other fragments that originate from the weathering and transport of rocks, and the unconsolidated deposits that result from the deposition of this material.

Transported

Refers to materials that have been moved from their original location to a new place by natural processes such as erosion or glaciation.