Multiple Choice
A manager of a clothing firm is deciding whether to add another factory in addition to one already in production.The manager would compare
A) The total revenue gained from the two factories to the total costs of running the two factories.
B) The marginal revenue expected from the second factory to the total costs of running the two factories.
C) The marginal revenue expected from the second factory to the marginal cost of the second factory.
D) The total revenue gained from the two factories to the marginal costs of running the two factories.
Correct Answer:
Verified
Correct Answer:
Verified
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