Scenario: a Manufacturing Firm Operates Three Plants with the Marginal

question 156

Multiple Choice

Scenario: A manufacturing firm operates three plants with the marginal cost curves shown in the figure and the average total costs summarized in the table below.


-Refer to the scenario above.If the market price of the firm's product is $80 per 100 kg,which plants should be used to produce the good?

---

Definitions:

Ferns

Ferns are non-flowering vascular plants that reproduce via spores and have fronds, belonging to a group called Pteridophyta.

Amphibians

Cold-blooded vertebrates that can live both in water (using gills to breathe) and on land (breathing with lungs) at different stages of their life.

Prebiotic Soup Hypothesis

A theory suggesting that life on Earth began in a "soup" of organic molecules, possibly in the oceans, facilitated by energy from sunlight or geothermal sources.

Fossil Record

The accumulation of evidence in rock layers about the history of life on Earth, including the remains or imprints of organisms from past geologic ages.