A firm has two plants that produce identical output. The cost functions are Upper C 1 equals 309 q minus 8 q squared plus 0.5 q cubed and Upper C 2 equals 309 q minus 14 q squared plus 1.0 q cubed. First, note that if AC 1equals309minus8qplus0.5q squared, then StartFraction dAC 1 Over dq EndFraction equals negative 8 plus 2 (0.5 )q . Similarly, if AC 2equals309minus14qplus1.0q squared, then StartFraction dAC 2 Over dq EndFraction equals negative 14 plus 2 (1.0 )q . At what output level does the average cost curve of each plant reach its minimum? The first plant reaches minimum average cost at nothing units of output. (E

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.