An industry has 50 identical firms. These firms have the same production function, which is Y=3x_{1}+x_{2}. Each firm has $0 fixed cost. The cost of factor 1 is $4 and the cost of factor $2 is $1. Both factors are variable. If the firm acts optimally (aka cost minimized), The total production cost for the industry if each firm produces 15 units is:
750 |
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1000 |
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3750 |
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Not enough information to determine |
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