A multiplant firm has equated marginal costs at each plant. By doing this: A) revenues are maximized given the level of output. B) profits are maximized. C) costs are minimized given the level of output. OD) none of the above

A multiplant firm has equated marginal costs at each plant. By doing this: A) revenues are maximized given the level of output. B) profits are maximized. C) costs are minimized given the level of output. OD) none of the above

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 17SQ

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

A multiplant firm has equated marginal costs at each plant. By doing this:
A) revenues are maximized given the level of output.
B) profits are maximized.
C) costs are minimized given the level of output.
D) none of the above

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