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Company A is looking to expand. it decides to take over company B, a competitor. The...

Company A is looking to expand. it decides to take over company B, a competitor. The two companies have similar technology, but different costs.

Company A has $1800 fixed costs and $2 marginal cost per unit produced

Company B has $600 fixed costs and $3 marginal cost per unit produced

WRITE THE COST FUNCTION FOR COMPANY A and COMPANY B

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Answer #1

Total cost Fixed Cost - Total Varialde Cost ТС FC + TVC d (TVC) or Me Marginal cost d -> me (tre) Тус 11 MC de for company A

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