What is the most efficient number of plants to serve market

Reference no: EM132192588

Question: A firm incurs production costs C(q) = F + mq, and transportation costs T(q) = aq + bq2, where q is the output of each of its plants. If market demand were given by q=100-P, and the average cost minimizing output were greater than 100, what is the most efficient number of plants to serve the market? Hint: draw the demand and AC curves.

Reference no: EM132192588

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