Answer the following statements true (T) or false (F)
1) A multi-plant firm is a firm with more than one demand curve.
2) Regardless if a multi-plant firm is perfectly competitive or has market power, to maximize profits, managers need to set the overall marginal cost from producing in each of their plants equal to the marginal revenue to find the profit-maximizing total quantity.
3) If the market price for multi-plant, perfectly competitive firm is $4, to maximize its profits, the firm should set the overall marginal cost of production equal to $4.
4) If the market price for multi-plant, perfectly competitive firm is $5, to maximize its profits, the firm should set the overall marginal cost of production to exceed $5.
5) If a multi-plant firm has market power, to maximize profit, it should set a price that exceeds its overall marginal cost.
1) FALSE
2) TRUE
3) TRUE
4) FALSE
5) TRUE
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