Scenario: A manufacturing firm operates three plants with the marginal cost curves shown in the figure and the average total costs summarized in the table below.

-Refer to the scenario above.If the market price of the firm's product is $80 per 100 kg,which plants should be used to produce the good?
A) Plants 1 and 2
B) Plants 2 and 3
C) Plants 1 and 3
D) All plants

Question

Scenario: A manufacturing firm operates three plants with the marginal cost curves shown in the figure and the average total costs summarized in the table below.

-Refer to the scenario above.If the market price of the firm's product is $80 per 100 kg,which plants should be used to produce the good?
A) Plants 1 and 2 
B) Plants 2 and 3 
C) Plants 1 and 3 
D) All plants

Quizplus · Accepted Answer

The Answer of Scenario: A manufacturing firm operates three plants with the marginal cost curves shown in the figure and the average total costs summarized in the table below.

-Refer to the scenario above.If the market price of the firm's product is $80 per 100 kg,which plants should be used to produce the good?
A) Plants 1 and 2 
B) Plants 2 and 3 
C) Plants 1 and 3 
D) All plants

Scenario: a Manufacturing Firm Operates Three Plants with the Marginal