Use the Following to Answer Questions: Figure: Marginal Costs 1

question 14

Multiple Choice

Use the following to answer questions: Figure: Marginal Costs 1
-Figure: Marginal Costs 2 This figure shows the production costs of two firms that produce bird feeders. If these two firms represent total production in the industry, how should they allocate the production of 200 bird feeders to minimize costs?

• A) Firm 2 should produce all 200 bird feeders.
• B) Firm 1 should produce all 200 bird feeders.
• C) Firm 1 should produce 150 bird feeders, and Firm 2 should produce 50 bird feeders.
• D) Firm 1 should produce 100 bird feeders, and Firm 2 should produce 100 bird feeders.

---

Definitions:

Cash Payment

A transaction in which goods or services are paid for using physical currency or digital equivalents, immediately transferring value.

Wages

Compensation paid to employees for their labor, typically calculated on an hourly, daily, or piecework basis.

Financial Statements

Financial Statements are formal records of the financial activities and position of a business, person, or entity, including the balance sheet, income statement, and cash flow statement.

Attached Schedule

A supplementary document provided with financial statements or tax returns that provides additional details or calculations related to the main document.