Marginal Cost Curve Assignment | Homework For You

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December 4th, 2019

Two suppliers have been contracted by a government agency to provide a total of 100 hours of training services to help agency employees learn how to use a new computer system. The marginal cost curve of firm 1 is MC1=100+.2Q1, while the marginal cost curve for Firm 2 is MC2=90+.4Q2. There are no fixed costs. Each firm provides 50 hours of training services each week.

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a.What is the total cost to firm 1 of providing 50 hours of training?

b.What is the total cost to firm 2 of providing 50 hours of training?

c.What is the marginal cost of training for firm 1 at 50 hours of training?

d.What is the marginal cost of training for firm 2 at 50 hours of training?

e.Is this the least costly division of training services between the two firms? If not, which firm should produce more, and which should produce less? Gets Economics homework help today

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