Refer to the following figure:
The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC1 and MC2 are the marginal cost curves for those two plants.
-How should the firm allocate total output between the two plants in order to maximize profit?
A) 10 to plant 1, 40 to plant 2
B) 20 to plant 1, 30 to plant 2
C) 40 to plant 1, 40 to plant 2
D) 20 to plant 1, 60 to plant 2
E) 20 to plant 1, 50 to plant 2
Correct Answer:
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