Use the Following to Answer Questions: Table: Two Factories -Table: ABC & XYZ

question 125

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: ABC & XYZ $$\begin{array} { c c c } \hline \boldsymbol { Q } & \boldsymbol { M C } \text { of ABC, Co. } & \boldsymbol { M C } \text { of XYZ, Inc. } \\\hline 0 & - & - \\1 & \$ 5 & \$ 4 \\2 & 10 & 8 \\3 & 20 & 12 \\4 & 25 & 16 \\5 & 30 & 20 \\6 & 35 & 24 \\7 & 40 & 30 \\8 & 45 & 35 \\\hline\end{array}$$ Refer to the table. What price should the firms in this table charge for them to produce 12 units of total output?

• A) $45
• B) $20
• C) $30
• D) $24

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