Suppose That a Firm Can Produce Its Output at Either

Multiple Choice

Suppose that a firm can produce its output at either of two plants. If profits are maximized, which of the following statements is true?

A) The marginal cost at the first plant must equal marginal revenue.
B) The marginal cost at the second plant must equal marginal revenue.
C) The marginal cost at the two plants must be equal.
D) all of the above
E) none of the above