In order to maximize profit,a firm that produces its output in two plants will allocate total output between the two plants so that

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To maximize profit, a firm will allocate its output between two plants in such a way that the marginal cost (MC) of producing an additional unit of output is the same in both plants. This ensures that the cost of increasing production is minimized across the plants. Marginal revenue (MR) considerations are about the revenue side and do not directly affect how output is allocated between plants based on cost considerations.

In Order to Maximize Profit,a Firm That Produces Its Output