Output determination in multi-plant business

Reference no: EM1371651

A firm uses two plants (A and B) to produce a product. The plant's marginal cost functions are given by the following equations:

MCa=10+.01Qa and MCb=4+.03Qb

If the firm wanted to produce 1400 units should it produce 700 units in each plant? Why or why not? Explain and illustrate graphically.

Reference no: EM1371651

Questions Cloud

Examining returns to scale of production function : Consider the production function Q=100L^.5K^.4. Suppose L=1 and K=1 so that Q=100. Explain the nature of returns to scale for this production function.

Describe there is a difference between a manager : Describe There is a difference between a manager and a true leader and Organizations tend to change over time and the type of leadership needed will change as well

How do we pick best energy alternative : Chemical process that converts hydrogen and oxygen into electricity and waste heat Oxygen from atmosphere, hydrogen from gas, solid hydrogen storage, or from hydrocarbon fuel Produce few emissions. How do we pick best energy alternative.

What can you find with respect to financial account : Does overvaluation (undervaluation) of As currency reflect a major capital inflow (outflow) into country. What can you find with respect to financial account of balance of payments to substantiate that interpretation.

Output determination in multi-plant business : A firm uses two plants (A and B) to produce the product. The plant's marginal cost functions are given by the following equations:

Explain one of the changes that occurred after one : Explain one of the changes that occurred after one of the events above and Do you agree with the change

What is this hidden mechanism : Real wealth which capitalists pull out of market must somewhere enter market. What is this hidden mechanism.

How fiscal policy can stabilize economy : how fiscal policy can ‘stabilize' economy. What about government borrowing and public debt.

Government regulations of business : What is wrong with this statement: Whenever the industry fails to achieve allocative efficiency by producing too little output, the shortage arises.

User Account

All Pages