A firm has two plants, X and Y. Suppose that the cost of producing x units at plant X is dollars and the cost of producing y units of the same product at plant Y is given by dollars. If the firm has an order for 3,000 units, how many should it produce at each plant to fill this order and minimize the cost of production?
A)1,500 at plant X; 1,500 at plant Y
B)2,500 at plant X; 500 at plant Y
C)1,000 at plant X; 2,000 at plant Y
D)3,000 at plant X; 0 at plant Y
E)2,000 at plant X; 1,000 at plant Y

Question

A firm has two plants, X and Y. Suppose that the cost of producing x units at plant X is  dollars and the cost of producing y units of the same product at plant Y is given by  dollars. If the firm has an order for 3,000 units, how many should it produce at each plant to fill this order and minimize the cost of production? ​
A)1,500 at plant X; 1,500 at plant Y 
B)2,500 at plant X; 500 at plant Y 
C)1,000 at plant X; 2,000 at plant Y 
D)3,000 at plant X; 0 at plant Y 
E)2,000 at plant X; 1,000 at plant Y

Quizplus · Accepted Answer

The Answer of A firm has two plants, X and Y. Suppose that the cost of producing x units at plant X is  dollars and the cost of producing y units of the same product at plant Y is given by  dollars. If the firm has an order for 3,000 units, how many should it produce at each plant to fill this order and minimize the cost of production? ​
A)1,500 at plant X; 1,500 at plant Y 
B)2,500 at plant X; 500 at plant Y 
C)1,000 at plant X; 2,000 at plant Y 
D)3,000 at plant X; 0 at plant Y 
E)2,000 at plant X; 1,000 at plant Y

A Firm Has Two Plants, X and Y