8. The following tables show a small firm’s long-run average cost of manufacturing a good at two different plants:

Plant 1 Quantity Total Cost Average Cost Marginal Cost 1 $50 2 $106 3 $164 4 $224 5 $287 6 $355 7 $430 8 $520 9 $618 Plant 2 Quantity Total Cost Average Cost Marginal Cost 1 $20 2 $52 3 $90 4 $130 5 $175 6 $227 7 $285 8 $345 9 $407

a. Complete the third and fourth columns of each table.

b. Suppose the price of the good is $60. How much should the firm produce in each plant in order to maximize the firm’s profit? Find the firm’s profit.

c. A new manager is assigned to the production department. He thinks that the firm can profitably move all production to Plant 2 since the average cost of production is lower in Plant 2 than in Plant 1. If the firm uses only Plant 2, how much should it produce to maximize profits? Find the firm’s profit. Assume zero fixed cost.