This topic contains a solution. Click here to go to the answer

Author Question: A multiplant monopolist can produce her output in either of two plants. Having sold all of her ... (Read 123 times)

gbarreiro

  • Hero Member
  • *****
  • Posts: 566
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Kimmy

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

C

Answer to Question 2

D




Kimmy

  • Sr. Member
  • ****
  • Posts: 342

 

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

For a complete list of videos, visit our video library