Use the Following to Answer Questions: Table: Two Factories -(Table: Two Factories) If the Firm in This Table Faces

question 133

Multiple Choice

Use the following to answer questions: Table: Two Factories $$\begin{array} { c c c c } \hline \text { Output }& \begin{array} { c } \text { Factory l } \\\text { Marginal } \\\text { Output }\end{array} & \text { Output } & \begin{array} { c } \text { Factory 2 } \\\text { Marginal } \\\text { Cost }\end{array} \\\hline 0 & - & 0 & - \\1 & \$ 1.00 & 1 & \$ 0.50 \\2 & 2.00 & 2 & 1.00 \\3 & 3.00 & 3 & 1.50 \\4 & 4.00 & 4 & 2.00 \\5 & 5.00 & 5 & 2.50 \\6 & 6.00 & 6 & 3.00 \\\hline\end{array}$$
-(Table: Two Factories) If the firm in this table faces a market price of $3.00, how many units of output should it produce in each factory?

• A) 6 units in Factory 1 and 5 units in Factory 2
• B) 2 units in Factory 1 and 4 units in Factory 2
• C) 0 units in Factory 1 and 6 units in Factory 2
• D) 3 units in Factory 1 and 6 units in Factory 2

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