Question
A monopolist produces its product in two different plants.Currently, the MC in plant 1 is$5.60, the MC in plant 2 is$6.20, and the marginal revenue
A monopolist produces its product in two different plants.Currently, the MC in plant 1 is$5.60, the MC in plant 2 is$6.20, and the marginal revenue of the last unit sold is$6.00. To maximize itsprofit, the monopolist should
A. increase production in plant1, decrease production in plant2, and increase total production. B. decrease production in plant 1 and increase production in plant2, but there is not enough information to tell whether the monopolist should increase or decrease total production. C. decrease production in plant1, increase production in plant2, and increase total production. D. increase production in plant1, decrease production in plant2, and decrease total production. E. increase production in plant 1 and decrease production in plant2, but there is not enough information to tell whether the monopolist should increase or decrease total production.
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