your firm operates three plants the cost


Your firm operates three plants. The cost functions vary across the three plants.

Plant A:

Marginal Cost = 6Q

Average Variable Cost = 3Q

Average Fixed Cost =1000/Q

Plant B:

Marginal Cost =10Q

Average Variable Cost = 5Q

Average Fixed Cost =600/Q

Plant C:

Marginal Cost =12Q

Average Variable Cost = 6Q

Average Fixed Cost = 4000/Q

You can sell your output at a constant price of $600.

a) How much output should be produced at each plant?

b) What is the average total cost of production at each plant?

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Macroeconomics: your firm operates three plants the cost
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