A Competitive Firm Has a Single Factory with the Cost

A competitive firm has a single factory with the cost function c(y) = 4y2 + 89 and produces 28 units in order to maximize profits. Although the price of output does not change, the firm decides to build a second factory with the cost function c(y) = 8y2 + 39. To maximize its profits, how many units should it produce in the second factory?

A) 14
B) 21
C) 9
D) 13
E) None of the above.

Correct Answer:

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