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A firm has two production plants it can use to make tennis balls. At one plant, the marginal cost of producing tennis balls is given by the equation MC1 = 4/10Q while at the other plant the marginal cost of production is given by the equation MC1 = 2 + 2/10Q
(a) How many units should the rm produce at each plant if it wants to produce 8 tennis balls (total) at the lowest possible cost?
(b) How many units should the rm produce at each plant if it wants to produce 4 tennis balls (total) at the lowest possible cost?
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