To Maximize Its Profit,a Firm with Two Plants Should

question 52

Multiple Choice

To maximize its profit,a firm with two plants should

• A)produce the output at which total marginal cost equals marginal revenue.
• B)choose the profit-maximizing output then allocate it equally between the two plants.
• C)allocate output so that marginal cost is the same in two plants
• D)both a and b
• E)both a and c

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Definitions:

Distribution Outlets

Points of sale or channels through which products are made available to customers.

Need-Satisfying Benefits

The advantages or positive outcomes that a product or service provides to fulfill the specific needs of a customer.

Information Overload

The state of being overwhelmed by the vast amount of information available, making it difficult to make decisions or focus effectively.

Strategic Planning

The process of defining a company's direction and making decisions on allocating its resources to pursue this strategy.