If a multi- plant firm has three plants and uses each of the plants to produce its product, the marginal cost to produce the firm's product is equal to ______.
A)the sum of the average fixed costs from each of the three plants
B)the plant with the highest marginal cost
C)the sum of the marginal costs from each of the three plants
D)the plant with the lowest marginal cost

Question

Quizplus · Accepted Answer

The marginal cost to produce the firm's product would be the sum of the marginal costs from each of the three plants. This is because in a multi-plant firm, each plant would have its own marginal cost curve and the total marginal cost curve would be the sum of the individual curves.

If a Multi- Plant Firm Has Three Plants and Uses