In a perfectly competitive market, Company B's total cost is givenby TC = Q-Q² + 1/3 Q ³ + 40, where Q is quantityproduced. Under which level of profit does the firm stopproduction in the short term?○ 4000○ -40○ -50○ 50 ExxonMobil runs two oil refinery plants, one in Indonesia and theother in Malaysia. The total cost function of the Indonesian plant isTC₁ =Q and the total cost function of the Malaysian plant isTC2=2Q2. If 5 units of refined oil are produced whileminimizing total cost, what is the optimal production at each plant?O Indonesia 1, Malaysia=4O Indonesia=0, Malaysia=5O Indonesia 2, Malaysia=3O Indonesia=3, Malaysia=2Indonesia 4, Malaysia=1

Answered belowIndonesia=1, Malaysia=4. -40.Explanation:Step 1:To find the optimal production levels…

Answered: In a perfectly competitive market,…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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