Use the following to answer questions:
Figure: Light Bulbs
-(Figure: Light Bulbs) What price of light bulbs would induce the firms in this diagram to minimize total production costs while maintaining the same total output?
A) $0.40
B) $0.80
C) $1.00
D) $1.00 for Firm 1, $0.70 for Firm 2

Question

Use the following to answer questions:
Figure: Light Bulbs 
-(Figure: Light Bulbs) What price of light bulbs would induce the firms in this diagram to minimize total production costs while maintaining the same total output?
A) $0.40 
B) $0.80 
C) $1.00 
D) $1.00 for Firm 1, $0.70 for Firm 2

Quizplus · Accepted Answer

A price of $0.80 would equalize the marginal cost of production across firms, leading to cost minimization while maintaining the same total output.

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