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Q1. A perfectly competitive firm faces a market price of $10 for its output of X. it owns two plants, A also B, whose total costs areTC for firm A = 10 +2X + .25X^2TC for firm B = 15 +.4X +.1X^2
Explain how many units should each plant produce to maximize profit at which price?
Q2. A farmer owns a plot of ground also sells the right to pump crude oil from his land to a crude oil producer. The crude oil producer agrees to pay the farmer $20 a barrel for every barrel pumped from the farmer's land.
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