A firm is producing 10,000 units of output in two plants, A and B, and each plant is producing 5,000 units of output. The marginal cost in plant A is $10 and the marginal cost in B is $6. To reduce the cost of producing 10,000 units the firm should
A. produce less in A and more in B.
B. produce more in A and less in B.
C. do nothing since the output in each plant is equal.
D. produce it all in B because B is the lower cost plant.
Answer: A
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