A firm incurs production costs cq f mq and transportation
A firm incurs production costs C(q) = F + mq, and transportation costs T(q) = aq + ????2, where q is the output of each of its plants. What is the optimal plant size, and how does it vary with the parameters F, m, a and b?
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a firm incurs production costs cq f mq and transportation costs tq aq 2 where q is the output of each of its plants
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