A multiplant monopolist can produce her output in either of two plants. Having sold all of her output she discovers that the marginal cost in plant 1 is 30 while the marginal cost in plant 2 is 20. To maximize profits the firm will
A) produce more output in plant 1 and less in the plant 2.
B) do nothing until it acquires more information on revenues.
C) produce less output in plant 1 and more in plant 2.
D) produce less in both plants until marginal revenue is zero.
E) shut down plant 1 and only produce at plant 2 in the future.
Question 2
Suppose a technological innovation shifts the marginal cost curve downward. Which one of the following cost curves does NOT shift?
A) Firm's short-run supply curve
B) Average total cost curve
C) Average variable cost curve
D) Average fixed cost curve
The experiment of Plaxton and his colleagues demonstrated that plants can alter their metabolism in
Male and female plants
Plants
Plants
Plants
Nanotubes and Plants