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Level of car production

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A new car company is deciding to enter the US market and to produce all of their cars in the US. They need to decide how many factories to build. All of the factories would be identical, each having the following cost function:

C(Q) = (1/3) Q3 - 10 Q2 + 150 Q.

  • At what level of car production will the company be better off using two factories instead of one?

Reference no: EM131268543

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