Suppose That a Firm Can Produce Its Output at Either

question 36

Multiple Choice

Suppose that a firm can produce its output at either of two plants. If profits are maximized, which of the following statements is true?

• A) The marginal cost at the first plant must equal marginal revenue.
• B) The marginal cost at the second plant must equal marginal revenue.
• C) The marginal cost at the two plants must be equal.
• D) all of the above
• E) none of the above