In the following graph, D represents the demand for dishwashers facing the All clean Company. The firm manufactures dishwashers in two plants; MC₁ and MC₂ are their marginal cost curves.

a. How many dishwashers should the firm produce?b. What price should the firm set?c. How should the output be allocated between the two plants so as to maximize profit?

Transcribed Image Text:

800 MC 700 MC2 600 500 400 - 300 200 100 MR D 20 40 60 80 100 120 140 160 Quantity Price and cost (dollars)