Scenario: A small firm manufactures maple baseball bats in two small production facilities, with the following marginal cost and average total cost equations:
Plant 1: Marginal cost: MC₁ = 10 + 2Q,
Plant 1: Average total cost: ATC₁ = 10 + Q.
Plant 2: Marginal cost: MC₂ = 10 + 2Q,
Plant 2: Average total cost: ATC₂ = 10 + Q.

-The owner of this firm insists that each bat-manufacturing facility produce the same number of bats.Under this requirement,how many bats are produced at each facility? Explain your answer.
A) 40
B) 45
C) 80
D) 90

Question

Scenario: A small firm manufactures maple baseball bats in two small production facilities, with the following marginal cost and average total cost equations:
Plant 1: Marginal cost: MC₁ = 10 + 2Q,
Plant 1: Average total cost: ATC₁ = 10 + Q.
Plant 2: Marginal cost: MC₂ = 10 + 2Q,
Plant 2: Average total cost: ATC₂ = 10 + Q.
 
-The owner of this firm insists that each bat-manufacturing facility produce the same number of bats.Under this requirement,how many bats are produced at each facility? Explain your answer.
A) 40 
B) 45 
C) 80 
D) 90

Quizplus · Accepted Answer

The Answer of Scenario: A small firm manufactures maple baseball bats in two small production facilities, with the following marginal cost and average total cost equations:
Plant 1: Marginal cost: MC₁ = 10 + 2Q,
Plant 1: Average total cost: ATC₁ = 10 + Q.
Plant 2: Marginal cost: MC₂ = 10 + 2Q,
Plant 2: Average total cost: ATC₂ = 10 + Q.
 
-The owner of this firm insists that each bat-manufacturing facility produce the same number of bats.Under this requirement,how many bats are produced at each facility? Explain your answer.
A) 40 
B) 45 
C) 80 
D) 90

Scenario: a Small Firm Manufactures Maple Baseball Bats in Two