Determine how many units will be produced in each plant

Reference no: EM13238246

Suppose a company owns two plants, plant A and plant B. The total cost functions are as follows:

Plant A: TCA = 5qA + 0.1qA2

Plant B: TCB = 5qB + 0.2qB2

1. Suppose that the company is a price taker and the market price is $10. How many units will each plant produce?

2. Suppose that the company decides to produce 100 units of its product in total. how many units will be produced in each plant? what will be the total cost of the 100 units?

Reference no: EM13238246

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