Firm $\mathrm{A}$ And Firm B Produce a Good Called $\mathrm{x}$ And Both Firms Have a Production Function Given By

Essay

Firm $\mathrm{A}$ and Firm B produce a good called $\mathrm{x}$ and both firms have a production function given by $(x)=\sqrt{x}$ . It costs each firm $\$ 0.25$ to produce each unit of $\mathrm{x}$ and both firms sell a unit of $\mathrm{x}$ for $\$ 2$ . However, to purchase the equipment needed to produce $x$ , Firm A spent $\$ 2500$ and Firm B spent $\$ 1500$ . The equipment each firm purchased is identical. How many units of $x$ should each firm produce?