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.

Question

Quizplus · Accepted Answer

This is the basic principle of profit maximization in any market structure, whether it is perfectly competitive or a monopoly with market power. By setting marginal cost equal to marginal revenue, the firm can produce at the point where it earns the highest profit.

Regardless If a Multi- Plant Firm Is Perfectly Competitive or Has