\n A firm can choose between two production technologies for a new product\n <\/p>\n
\n line. If it installs technology 1, its yearly costs will be C1(q) = 3600 + 65q +\n <\/p>\n
\n 36q2\n <\/p>\n
\n . If it installs technology 2, they will be C2(q) = 900 + 900q + q2\n <\/p>\n
\n .\n <\/p>\n
\n i) What is the minimum efficient scale for each technology?\n <\/p>\n
\n ii) Which technology would the firm prefer (purely from a cost\n <\/p>\n
\n standpoint) if it expected to sell 30 units in summer and 10 units in\n <\/p>\n
\n winter each year?\n <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
A firm can choose between two production technologies for a new product line. If it installs technology 1, its yearly costs will be C1(q) = 3600 + 65q + 36q2 . If it installs technology 2, they will be C2(q) = 900 + 900q + q2 . i) What is the minimum efficient scale for […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/282782"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=282782"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/282782\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=282782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=282782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=282782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}