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Firm A\mathrm{A} And Firm B Produce a Good Called x\mathrm{x} And Both Firms Have a Production Function Given By

Question 6

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Firm A\mathrm{A} and Firm B produce a good called x\mathrm{x} and both firms have a production function given by (x)=x(x)=\sqrt{x} . It costs each firm $0.25\$ 0.25 to produce each unit of x\mathrm{x} and both firms sell a unit of x\mathrm{x} for $2\$ 2 . However, to purchase the equipment needed to produce xx , Firm A spent $2500\$ 2500 and Firm B spent $1500\$ 1500 . The equipment each firm purchased is identical. How many units of xx should each firm produce?

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Both firms should produce 16 u...

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