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
Answer: E
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a. the United Kingdom; Africa b. Southern Europe; the West Indies c. the West Indies; the United Kingdom d. the United kingdom; Southern Europe.
When the ____________establishes new regulations, the cost of production can be affected.
Fill in the blank(s) with the appropriate word(s).
Most economists are in agreement that minimum wages cause unemployment and make some people worse off as a result. However, does that imply that it makes everyone worse off? Who might benefit?
What will be an ideal response?
How would the elimination of a sales tax affect the market for a product that had been subject to the tax?
A) The equilibrium price for the product would fall by less than the amount of the tax. B) The reduction in government revenue from the tax would be made up by an increase in property taxes. C) The supply of the product would become more elastic. D) The demand for the product would rise and the equilibrium price would fall by the amount of the tax.